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Is the Japanese Distribution System Really Inefficient?

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Author Info
Takatoshi Ito
Masayoshi Maruyama

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Abstract

This paper investigates the efficiency of the Japanese distribution system, measured by the distribution margin. Most of the discussions on the Japanese distribution system have so far relied on institutional descriptions and anecdotal evidence, failing to substantiate the case. The present paper will show that the Japanese and U.S. distribution sectors are about the same in terms of value added and distribution margins. Therefore, it is not true that the distribution sector adds up unnecessary distribution costs or earns monopolistic operating profits. This paper will not address a question whether the distibution system is acting as a non-tariff barrier. Thus, even if the distribution sector in Japan is jUdged to be "efficient," it leaves open a possibility that the distribution system works as a barrier to potential new entrants from both home and foreign manufacturers.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3306.

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Date of creation: Mar 1990
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Handle: RePEc:nbr:nberwo:3306

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References listed on IDEAS
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.:
  1. Flath, David, 1989. "Vertical restraints in Japan," Japan and the World Economy, Elsevier, vol. 1(2), pages 187-203, March. [Downloadable!] (restricted)
  2. Flath, David, 1990. "Why are there so many retail stores in Japan?," Japan and the World Economy, Elsevier, vol. 2(4), pages 365-386, December. [Downloadable!] (restricted)
  3. Flath, David & Nariu, Tatsuhiko, 1989. "Returns policy in the Japanese marketing system," Journal of the Japanese and International Economies, Elsevier, vol. 3(1), pages 49-63, March. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Peter Hooper & Elizabeth Vrankovich, 1995. "International comparisons of the levels of unit labor costs in manufacturing," International Finance Discussion Papers 527, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  2. David E. Weinstein, 1996. "Foreign Direct Investment and Keiretsu: Rethinking U.S. and Japanese Policy," NBER Working Papers 5612, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Terutomo Ozawa, 2001. "The "Hidden" Side of the "Flying-Geese" Model of Catch-Up Growth: Japan's Dirigiste Institutional Setup and a Deepening Financial Morass," Economics Study Area Working Papers 20, East-West Center, Economics Study Area. [Downloadable!]
  4. René Hertog & Jeroen Potjes & A. Thurik, 1994. "Retail profit margins in Japan and Germany," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(2), pages 375-390, June. [Downloadable!] (restricted)
    Other versions:
  5. repec:eab:tradew:139 is not listed on IDEAS
  6. David Flath, 2003. "Regulation, Distribution Efficiency, and Retail Density," NBER Working Papers 9450, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Marcus Noland, 1993. "Protectionism in Japan," Open Economies Review, Springer, vol. 4(1), pages 67-81, March. [Downloadable!] (restricted)
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