In this paper, we construct a two-country business cycle accounting model in order to investigate quantitatively the relationship between Japan and the Asian Tigers. Our model is based on Backus, Kehoe and Kydland (1994) in which each economy produces tradable intermediate goods that are...

After the Federal Republic of Germany, Japan is the second largest trade partner of the Communist countries as a whole and of the Soviet Union and the largest partner of the People's Republic of China. It has only been in recent years that Japan gained this formidable position in the trade with...