NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Nationalism and Economic Exchange: Evidence from Shocks to Sino-Japanese Relations

Raymond Fisman, Yasushi Hamao, Yongxiang Wang

NBER Working Paper No. 20089
Issued in May 2014
NBER Program(s):   CF   DEV   ITI   POL

We study the impact of nationalism and interstate frictions on international economic relations by analyzing market reaction to adverse shocks to Sino-Japanese relations in 2005 and 2010. Japanese companies with high China exposure suffer relative declines during each event window; a symmetric effect is observed for Chinese companies with high Japanese exposure. The effect on Japanese companies is more pronounced for those operating in industries dominated by Chinese state-owned enterprises, while firms with high Chinese employment experience lower declines. These results emphasize the role of countries' economic and political institutions in mediating the impact of interstate frictions on firm-level outcomes.

download in pdf format
   (516 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20089

Published: Raymond Fisman & Yasushi Hamao & Yongxiang Wang, 2014. "Nationalism and Economic Exchange: Evidence from Shocks to Sino-Japanese Relations," Review of Financial Studies, Society for Financial Studies, vol. 27(9), pages 2626-2660. citation courtesy of

Users who downloaded this paper also downloaded* these:
Fisman and Wang w20090 Corruption in Chinese Privatizations
Cantoni, Chen, Yang, Yuchtman, and Zhang w20112 Curriculum and Ideology
Bloom, Romer, Terry, and Van Reenen w19951 Trapped Factors and China's Impact on Global Growth
Wang and Whalley w19898 Are Chinese Markets for Manufactured Products More Competitive than in the US?: A Comparison of China -US Industrial Concentration Ratios
Li, Wang, and Whalley w19853 China's Regional and Bilateral Trade Agreements
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us