Did US Safeguards Resuscitate Harley-Davidson in the 1980s?
AbstractThis paper examines US safeguards applied to the motorcycle market in the 1980s. After receiving temporary protection by means of a maximum tariff of over 45%, Harley-Davidson sales recovered dramatically. Simulations, based on structural demand and supply estimates, indicate that while safeguard tariffs did benefit Harley-Davidson, they only account for a fraction of its increased sales. This is primarily because consumers perceived that Harley-Davidson and Japanese large motorcycles were poorly matched substitutes for each other. Our results provide little evidence that safeguard provisions triggered restructuring in Harley-Davidson.
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Length: 30 pages
Date of creation: Feb 2009
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Other versions of this item:
- Kitano, Taiju & Ohashi, Hiroshi, 2009. "Did US safeguards resuscitate Harley-Davidson in the 1980s?," Journal of International Economics, Elsevier, vol. 79(2), pages 186-197, November.
- KITANO Taiju & OHASHI Hiroshi, 2007. "Did U.S. Safeguard Resuscitate Harley Davidson in the 1980s?," Discussion papers 07026, Research Institute of Economy, Trade and Industry (RIETI).
- NEP-ALL-2009-03-07 (All new papers)
- NEP-HIS-2009-03-07 (Business, Economic & Financial History)
- NEP-LAB-2009-03-07 (Labour Economics)
- NEP-MKT-2009-03-07 (Marketing)
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