Geo-Economic Competition in the Pacific Rim: The Political Geography of Japanese and US Exports, 1966-1988

Abstract

Using a spatial modelling strategy, international trade with Japan and the United States is explained by the price of products, distance, size of the importing country, and political relations for the countries of the Pacific Rim. The model is checked for the presence of the two geographic effects (dependence and heterogeneity). A mixed spatial-price-conflict model is shown to be superior to the non-geographic models currently used in the study of the political economy of international trade. Exports show little relationship to the state of the political relations between importer and exporter. There is strong and consistent evidence for a hemispheric (Asia/Australasia versus the Americas) effect. Over time, both the Japanese export pattern and the model for Japanese exports emulate those of the United States. International political economy models should check for the presence of spatial effects (heterogeneity and dependence) and reinterpret the central links (between political and economic relations) in light of their presence.

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