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The Impact of Japanese Auto VER's on the US and Japanese Economies

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Author Info
F. Gerard Adams
Byron Gangnes () (Department of Economics, University of Hawaii at Manoa)
Gene Huang

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Abstract

The voluntary export restraint agreement (VER) limiting Japanese exports of cars to the US is evaluated. Extending a previous article dealing with Japanese transplant auto factories in the US, the authors examine impacts of alternative responses to the VER on the micro and macro level. The VER will result in a modest improvement in the bilateral trade balance. It will provide a small macroeconomic stimulus to the US economy, but will affect output in Japan adversely.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/88-98/WP_93-9.pdf
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Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 199309.

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Length: 20 pages
Date of creation: 1993
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Handle: RePEc:hai:wpaper:199309

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