Gocer, IsmetOngan, SerdarKaramelikl, HuseyinRarick, Charles A.2024-09-292024-09-2920230015-73250971-7625https://doi.org/10.1177/00157325231192180https://hdl.handle.net/20.500.14619/6404This study aims to reveal the need to reformulate new forms of Bilateral Trade Balances (BTBs) for a country rather than a traditional BTB. This is because the traditional BTB ratio, based on total exports and defined as the total exports/total imports ratio, cannot classify and quantify a BTB based on its economic impact content. It fails to classify because countries also export goods already imported (denotes re-export) besides exporting their domestic goods produced within the country (denotes domestic export). It also fails to quantify because, while domestic goods undergo a value-added process within a country, re-exported goods do not. In this context, for the first time, this study attempts to reformulate/reinvestigate new forms of BTBs as production-related BTB, based on domestic export and non-production-related BTB, based on re-export for the USA with Japan. Empirical findings confirm the necessity and cruciality of the proposed methodology in this study.JEL Codes: F10, F14eninfo:eu-repo/semantics/openAccessProduction-related bilateral trade balancenon-production-related bilateral trade balanceNonlinear ARDL Approachthe USAJapanArticle10.1177/001573252311921802-s2.0-85176109228Q2WOS:001094954600001Q3