Japanese and Korean Automobile Exports and the Alchian-Allen Theorem
AbstractThis paper compares data on Japanese and Korean automobile exports to the United States to examine consistency with the Alchian-Allen theorem. The theorem suggests that imposing a per unit charge such as transport cost will lower the relative price and increase the relative consumption of higher quality cars. Results show that the relative price of higher-quality cars is not necessarily lower with increased shipping costs, measured by CIF charges (cost, insurance, and freight). A possible explanation is that insurance and other shipping charges are imposed based on the car price, and these charges reduce or eliminate the Alchian-Allen effect of per-unit freight charge.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41928.
Date of creation: Jul 2012
Date of revision:
International Trade; Transport Costs; Alchian-Allen Theorem; Dynamic OLS;
Other versions of this item:
- Pramesti Resiandini, 2014. "Japanese and Korean automobile exports and the Alchian-Allen theorem," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 7(1), pages 86-98.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-27 (All new papers)
- NEP-INT-2012-10-27 (International Trade)
- NEP-TRE-2012-10-27 (Transport Economics)
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.:
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