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Did U.S. Safeguard Resuscitate Harley Davidson in the 1980s?

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  • KITANO Taiju
  • OHASHI Hiroshi

Abstract

This paper examines the effect of U.S. safeguard on motorcycle imports in the period from 1983 to 1987. After receiving the temporary protection with the maximum tariff of more than 45%, Harley Davidson drastically recovered its sales. The paper conducts structural analyses of the motorcycle market, and finds that the safeguard contributed merely a fraction of Harley Davidson's profit. This finding is primarily due to small cross-price elasticity of demand between American and Japanese motorcycle models.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 07026.

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Length: 26 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:eti:dpaper:07026

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  1. James Levinsohn & Steven Berry & Ariel Pakes, 1999. "Voluntary Export Restraints on Automobiles: Evaluating a Trade Policy," American Economic Review, American Economic Association, vol. 89(3), pages 400-430, June.
  2. Aviv Nevo, 2000. "A Practitioner's Guide to Estimation of Random-Coefficients Logit Models of Demand," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(4), pages 513-548, December.
  3. Clerides, Sofronis, 2008. "Gains from trade in used goods: Evidence from automobiles," Journal of International Economics, Elsevier, vol. 76(2), pages 322-336, December.
  4. Pakes, Ariel & Berry, Steven & Levinsohn, James A, 1993. "Applications and Limitations of Some Recent Advances in Empirical Industrial Organization: Price Indexes and the Analysis of Environmental Change," American Economic Review, American Economic Association, vol. 83(2), pages 241-46, May.
  5. Pindyck, Robert S & Rotemberg, Julio J, 1987. "Are Imports to Blame? Attribution of Injury under the 1974 Trade Act," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 101-22, April.
  6. Ohashi, Hiroshi, 2002. "Anticipatory effects of voluntary export restraints: a study of home video cassette recorders market, 1978-86," Journal of International Economics, Elsevier, vol. 57(1), pages 83-105, June.
  7. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  8. Kelly, Kenneth, 1988. "The Analysis of Causality in Escape Clause Cases," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 187-207, December.
  9. Miyagiwa, Kaz & Ohno, Yuka, 1999. "Credibility of Protection and Incentives to Innovate," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 143-63, February.
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Cited by:
  1. Deborah L. Swenson, 2012. "The Influence of Chinese Trade Policy on Automobile Assembly and Parts," CESifo Economic Studies, CESifo, vol. 58(4), pages 703-730, December.

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