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Did US Safeguards Resuscitate Harley-Davidson in the 1980s?

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Author Info
Taiju Kitano (National Graduate Institute for Policy Studies)
Hiroshi Ohashi (Faculty of Economics, University of Tokyo)

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Abstract

This 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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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-612.

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Length: 30 pages
Date of creation: Feb 2009
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Handle: RePEc:tky:fseres:2009cf612

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  2. Bown, Chad P., 2002. "Why are safeguards under the WTO so unpopular?," World Trade Review, Cambridge University Press, vol. 1(01), pages 47-62, March. [Downloadable!]
  3. Pindyck, Robert S & Rotemberg, Julio J, 1987. "Are Imports to Blame? Attribution of Injury under the 1974 Trade Act," Journal of Law & Economics, University of Chicago Press, vol. 30(1), pages 101-22, April.
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  4. Pakes, Ariel & Berry, Steven & Levinsohn, James A, 1993. "Applications and Limitations of Some Recent Advances in Empirical Industrial Organization: Price Indexes and the Analysis of Environmental Change," American Economic Review, American Economic Association, vol. 83(2), pages 241-46, May.
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  6. Douglas A. Irwin, 2003. "Causing Problems? The WTO Review of Causation and Injury Attribution in U.S. Section 201 Cases," NBER Working Papers 9815, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Steven Berry & James Levinsohn & Ariel Pakes, 1999. "Voluntary Export Restraints on Automobiles: Evaluating a Trade Policy," American Economic Review, American Economic Association, vol. 89(3), pages 400-430, June. [Downloadable!] (restricted)
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  10. Ohashi, Hiroshi, 2002. "Anticipatory effects of voluntary export restraints: a study of home video cassette recorders market, 1978-86," Journal of International Economics, Elsevier, vol. 57(1), pages 83-105, June. [Downloadable!] (restricted)
  11. Aviv Nevo, 2000. "A Practitioner's Guide to Estimation of Random-Coefficients Logit Models of Demand," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 9(4), pages 513-548, December. [Downloadable!] (restricted)
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