Traded commodities embody an environmental service, namely the amount of pollution emitted domestically when goods are produced for export. Japan's extensive economic ties with its Asian Pacific trading partners necessitate special consideration of trade and environment linkages. The data...

The theoretical literature on trade and foreign direct investment (FDI) indicates that they could be either substitutes or complements. The empirical evidence on U.S.-Japan and APEC countries suggests that trade and FDI exhibit a complementary relationship. In this paper, we employ a six-region...