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CARWARS: Trying to Make Sense of U.S.-Japan Trade Frictions in the Automobile and Automobile Parts Markets

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  • James Levinsohn

Abstract

This paper tries to make sense of the recent trade dispute between the U.S. and Japan in autos and auto parts. The paper argues that there are structural differences between the way that the auto industries are organized in the U.S. and Japan, and that these differences have contributed to the growing bilateral trade deficit in auto parts. The paper also provides econometric estimates of what would have happened had the threatened 100 percent tariff on Japanese luxury cars not been withdrawn by the U.S.

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File URL: http://www.nber.org/papers/w5349.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5349.

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Date of creation: Nov 1995
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Publication status: published as The Effects of US Trade Protection and Promotion Policies," R. Feenstra, ed ., pp. 11-32, (Chicago: University of Chicago Press, 1997).
Handle: RePEc:nbr:nberwo:5349

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  1. Ariel Pakes, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," NBER Working Papers 1340, National Bureau of Economic Research, Inc.
  2. Berry, S. & Linsohn, J. & Pakes, A., 1997. "Voluntary Export Restraints on Automobiles: Evaluating a Strategic Trade Policy," Working Papers 393, Research Seminar in International Economics, University of Michigan.
  3. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
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Cited by:
  1. Avik Chakrabarti, 2003. "Import competition, employment and wage in US manufacturing: new evidence from multivariate panel cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1445-1449.
  2. Kala Krishna & John Morgan, 1996. "Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute," NBER Working Papers 5680, National Bureau of Economic Research, Inc.

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