State of Research
If one considers the conditions for spillovers of political shocks onto Sino-Japanese economic relations, such as the changes in Sino-Japanese trade shares and trade structure, the question arises why those effects could not be observed more often. In the first part of this chapter, the state of research regarding theoretical approaches to possible impacts of political conflicts on trade will be discussed and evaluated in the context of Sino-Japanese relations. The second part of the chapter presents past research on the effects of politically conflicting Sino-Japanese relations on economic exchange and discusses the implications for political shocks to Japan-China relations between 2005 and 2012.
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