Partial ownership arrangements in the Japanese automobile industry; 1990-2000
AbstractThe end of the 1990’s saw a number of foreign automobile manufacturers become the largest shareholders in several Japanese automobile manufacturers. It seems logical to conclude that a firm only enters into a partial ownership arrangement (POA) if it is profit maximizing. However, research to date has treated POAs as if exogenous to the model. This paper develops a model that assumes POAs are determined endogenously. Data for the Japanese automobile industry are then used to investigate the factors that determine whether a firm enters into a POA, and the effects a POA has on the price-cost margin. The findings of this paper suggest that while both foreign and domestic firms take an interest in product mix when exploring POAs in the Japanese market, they have differing profit incentives. Furthermore, the level of ownership has a positive effect on POAs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Universidad del CEMA in its journal Journal of Applied Economics.
Volume (Year): VII (2004)
Issue (Month): (November)
Contact details of provider:
Postal: Av. Córdoba 374, (C1054AAP) Capital Federal
Phone: (5411) 6314-3000
Fax: (5411) 4314-1654
Web page: http://www.cema.edu.ar/publicaciones/jae.html
More information through EDIRC
partial ownership arrangements; price-cost margin; technology transfers;
Find related papers by JEL classification:
- L0 - Industrial Organization - - General
- L6 - Industrial Organization - - Industry Studies: Manufacturing
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Clarke, Roger & Davies, Stephen & Waterson, Michael, 1984. "The Profitability-Concentration Relation: Market Power or Efficiency?," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 32(4), pages 435-50, June.
- Yamawaki, Hideki, 1989. "A Comparative Analysis of Intertemporal Behavior of Profits: Japan and the United States," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 37(4), pages 389-409, June.
- Alley, Wilson A, 1997. "Partial Ownership Arrangements and Collusion in the Automobile Industry," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 45(2), pages 191-205, June.
- Qiu, Larry D. & Spencer, Barbara J., 2002.
"Keiretsu and relationship-specific investment: implications for market-opening trade policy,"
Journal of International Economics, Elsevier,
Elsevier, vol. 58(1), pages 49-79, October.
- Larry D. Qiu & Barbara J. Spencer, 2001. "Keiretsu and Relationship-Specific Investment: Implications for Market-Opening Trade Policy," NBER Working Papers 8279, National Bureau of Economic Research, Inc.
- Arghya Ghosh & Hodaka Morita, 2012. "Knowledge Transfer and Partial Equity Ownership," Discussion Papers, School of Economics, The University of New South Wales 2012-18, School of Economics, The University of New South Wales.
- Bárcena-Ruiz, Juan Carlos & Campo, María Luz, 2012.
"Partial cross-ownership and strategic environmental policy,"
Resource and Energy Economics, Elsevier,
Elsevier, vol. 34(2), pages 198-210.
- Bárcena Ruiz, Juan Carlos & Campo Corredera, María Luz, 2011. "Partial cross-ownership and strategic environmental policy," IKERLANAK, Universidad del PaÃs Vasco - Departamento de Fundamentos del AnÃ¡lisis EconÃ³mico I 2011-47, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valeria Dowding).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.