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Did US safeguards resuscitate Harley-Davidson in the 1980s?

  • Kitano, Taiju
  • Ohashi, Hiroshi

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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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 79 (2009)
Issue (Month): 2 (November)
Pages: 186-197

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Handle: RePEc:eee:inecon:v:79:y:2009:i:2:p:186-197
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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