Estimating the Relationship Between Cultural Trade and Cultural GDP in Japan

The main aim of this study is to examine the relationship between Japan's cultural trade and cultural GDP.Cultural trade is measured in three ways: as a sum of cultural imports and exports, as cultural exports and as cultural imports.Using annual data from 2015 to 2019, estimation results from a panel vector autoregression (VAR) model suggests that the relationship between cultural trade and cultural GDP may be consistent with the growth-driven exports hypothesis rather than the export-led growth hypothesis.A panel Granger causality test and a system generalized method of moments (GMM) estimation are also utilized in this study.