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World Trade in Used Automobiles: A Gravity Analysis of Japanese and US Exports

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  • Danilo Pelletiere
  • Kenneth A. Reinert

Abstract

We estimate a gravity model of Japanese and US exports of used automobiles that incorporates an original, ordered measure of protection in global, used automobile markets. The model confirms that, overall, protection by our measure is suppress‐ive and often statistically significant and that what we term ‘Grubel income effects’ are present. However, Japanese export behavior appears to differ in some important respects from that of the USA, with distance and protection levels being less significant and left‐hand side driving patterns being a critical explanatory variable.

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  • Danilo Pelletiere & Kenneth A. Reinert, 2006. "World Trade in Used Automobiles: A Gravity Analysis of Japanese and US Exports," Asian Economic Journal, East Asian Economic Association, vol. 20(2), pages 161-172, June.
    • Handle: RePEc:bla:asiaec:v:20:y:2006:i:2:p:161-172
    DOI: 10.1111/j.1467-8381.2006.00227.x-i1
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