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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

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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estimates of what would have happened had the threatened 100 percent tariff on Japanese luxury cars not been withdrawn by the U.S.

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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 relationship to a non-chapter. This should not happen. Please contact NBER.
Handle: RePEc:nbr:nberwo:5349

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Find related papers by JEL classification:
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
F1 - International Economics - - Trade

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. Pakes, Ariel S, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, Econometric Society, vol. 54(4), pages 755-84, July. [Downloadable!] (restricted)
  2. Steven Berry & James Levinsohn & Ariel Pakes, 1995. "Voluntary Export Restraints on Automobiles: Evaluating a Strategic TradePolicy," NBER Working Papers 5235, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. 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. [Downloadable!] (restricted)
  4. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July. [Downloadable!] (restricted)
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(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. 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. [Downloadable!] (restricted)
    Other versions:
  2. Avik Chakrabarti, 2003. "Import competition, employment and wage in US manufacturing: new evidence from multivariate panel cointegration analysis," Applied Economics, Taylor and Francis Journals, vol. 35(13), pages 1445-1449, September. [Downloadable!] (restricted)
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