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The Effect Of The Semiconductor Trade Agreement On Japanese Firms

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  • CRAIG PARSONS

    (Faculty of Economics, Yokohama National University, 79-1 Tokiwadai, Hodogaya, Yokohama, Japan 240-8501, Japan)

Abstract

This paper investigates the impact of the 1986 US-Japan Semiconductor Trade Agreement (STA) and antidumping actions by the US on Japanese firms. We conduct an event study employing WLS and OLS estimations on the daily returns of eight large electronics firms over roughly a two year period. We find that the STA had a positive effect on the daily returns while the antidumping rulings were found to be insignificant. These results are consistent with some authors' views that the STA policy may have facilitated collusive behavior to the benefit of not only US, but Japanese firms as well. These results shed some light on the ambiguous results found in the Voluntary Import Expansion (VIE) literature.

Suggested Citation

  • Craig Parsons, 2005. "The Effect Of The Semiconductor Trade Agreement On Japanese Firms," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 50(01), pages 117-129.
    • Handle: RePEc:wsi:serxxx:v:50:y:2005:i:01:n:s0217590805001883
    DOI: 10.1142/S0217590805001883
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    Cited by:

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    3. Hosoe, Nobuhiro, 2021. "Impact of tighter controls on Japanese chemical exports to Korea," Economic Modelling, Elsevier, vol. 94(C), pages 631-648.

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