Has Japan Been Left Out in the Cold by Regional Integration?

This research was done while I was a visiting scholar at the Institute for Monetary and Economic Studies (IMES) of the Bank of Japan (BOJ) during the spring of 2001. I am very grateful to the IMES and the BOJ for their hospitality and research resources, and would like to thank the seminar participants at the IMES, Hitotsubashi University, the Research Institute of Economy, Trade, and Industry, and an anonymous referee for their comments. The views expressed are mine alone and are not necessarily those of the IMES, the BOJ, the Federal Reserve Bank of St. Louis, or the Federal Reserve System. MONETARY AND ECONOMIC STUDIES/APRIL 2002