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Pricing policy and quality upgrading in the Swedish car market: Do import surveillance and exchange rate instability matter?

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Author Info
Yves Bourdet
Abstract

Recent years have seen an increased use of quantitative restrictions in passenger car trade. In this paper we investigate the impact of import surveillance on product and pricing policies of car manufactures in the Swedish car market over the period 1986–1989. Evidence is found of substantal upgrading in Japanese (and German) car supply. The evidence on changes in quality-adjusted prices is less conclusive. In addition it is found that exchange rate changes were not passed through to car prices. Copyright Kluwer Academic Publishers 1991

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File URL: http://hdl.handle.net/10.1007/BF01886144
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Publisher Info
Article provided by Springer in its journal Open Economies Review.

Volume (Year): 2 (1991)
Issue (Month): 3 (October)
Pages: 255-274
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Handle: RePEc:kap:openec:v:2:y:1991:i:3:p:255-274

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Related research
Keywords: voluntary export restraint; import surveillance; quality upgrading; qualityadjusted price; pricing to market;

References listed on IDEAS
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  1. Robert C. Feenstra, 1986. "Gains from Trade in Differentiated Products: Japanese Compact Trucks," NBER Working Papers 1978, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May. [Downloadable!] (restricted)
    Other versions:
  3. Aw, Bee Yan & Roberts, Mark J., 1986. "Measuring quality change in quota-constrained import markets: The Case of U.S. Footwear," Journal of International Economics, Elsevier, vol. 21(1-2), pages 45-60, August. [Downloadable!] (restricted)
  4. Kirman, Alan & Schueller, Nathalie, 1990. "Price Leadership and Discrimination in the European Car Market," Journal of Industrial Economics, Blackwell Publishing, vol. 39(1), pages 69-91, September. [Downloadable!] (restricted)
    Other versions:
  5. Melo, Jaime de & Messerlin, Patrick A., 1988. "Price, quality and welfare effects of European VERs on Japanese autos," European Economic Review, Elsevier, vol. 32(7), pages 1527-1546, September. [Downloadable!] (restricted)
  6. Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February. [Downloadable!] (restricted)
  7. Falvey, Rodney E, 1979. "The Composition of Trade within Import-restricted Product Categories," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1105-14, October. [Downloadable!] (restricted)
  8. Feenstra, Robert C., 1985. "Automobile prices and protection: The U.S.-Japan trade restraint," Journal of Policy Modeling, Elsevier, vol. 7(1), pages 49-68. [Downloadable!] (restricted)
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