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Costs and Productivity in Automobile Production

Author

Listed:
  • Fuss,Melvyn A.
  • Waverman,Leonard

Abstract

Motor vehicles are prominent among the flows of exports and imports for Canada, Germany, Japan and the United States, and these trade flows are heavily influenced by the basic relative competitiveness of the production processes for automotive manufacturing. In this book the authors analyse in depth the factors that contributed to the comparative cost competitiveness of the four countries' auto industries over the period 1961–84, and disentangle the factors contributing to the Japanese cost and efficiency advantages. Their main contribution is to provide estimates of comparative costs of automobile production (both short-run and long-run) and the sources of these cost differences, based on the econometric cost-function methodology. An innovation is the careful treatment of capacity utilization, one of the most important sources of short-run cost and efficiency differences. This methodology is also used effectively in an analysis of the Canada-US Auto Pact, a unique experiment in trade liberalization.

Suggested Citation

  • Fuss,Melvyn A. & Waverman,Leonard, 1992. "Costs and Productivity in Automobile Production," Cambridge Books, Cambridge University Press, number 9780521341417, Fall.
  • Handle: RePEc:cup:cbooks:9780521341417
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    Citations

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    Cited by:

    1. Kurt A. Hafner, 2015. "Tax Competition and Economic Integration," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 45-61, February.
    2. Jong, Gjalt de, 1998. "Causal loops in long-term supply relationships : theory and evidence from the United States," Research Report 98B38, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    3. Kurt A. Hafner, 2011. "Trade Liberalization and Technology Diffusion," Review of International Economics, Wiley Blackwell, vol. 19(5), pages 963-978, November.
    4. repec:dgr:rugsom:98b38 is not listed on IDEAS
    5. Truett, Lila J. & Truett, Dale B., 2007. "A cost-based analysis of scale economies in the French auto industry," International Review of Economics & Finance, Elsevier, vol. 16(3), pages 369-382.
    6. Lila Truett & Dale Truett, 2006. "Production and costs in the South African motor vehicle industry," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2381-2392.
    7. repec:got:cegedp:31 is not listed on IDEAS
    8. Lila J. Truett & Dale B. Truett, 2003. "The Italian Automotive Industry and Economies of Scale," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 329-337, July.
    9. Truett, Lila J. & Truett, Dale B., 2014. "The South Korean auto industry's path to maturity," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 86-94.
    10. Lila J. Truett & Dale B. Truett, 2008. "Insourcing, Outsourcing, and Unemployment in the Spanish Auto Industry," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 702-713, November.
    11. Chu, Hyo-Youn, 2014. "Investments in response to trade policy: The case of Japanese firms during voluntary export restraints," Japan and the World Economy, Elsevier, vol. 32(C), pages 14-36.
    12. Ray, Subhash C. & Chen, Lei & Mukherjee, Kankana, 2008. "Input price variation across locations and a generalized measure of cost efficiency," International Journal of Production Economics, Elsevier, vol. 116(2), pages 208-218, December.
    13. Rudholm, Niklas, 2006. "Mergers and Economies of Scale: Volkswagen AG 1976 - 2000," HUI Working Papers 4, HUI Research.
    14. Goto, Mika & Tsutsui, Miki, 1998. "Comparison of Productive and Cost Efficiencies Among Japanese and US Electric Utilities," Omega, Elsevier, vol. 26(2), pages 177-194, April.
    15. Talan İşcan, 2015. "Windfall Resource Income, Productivity Growth, and Manufacturing Employment," Open Economies Review, Springer, vol. 26(2), pages 279-311, April.
    16. Lila J. Truett & Dale B. Truett, 2005. "Nafta¡¯S Impact On The Mexican Automotive Sector," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(2), pages 155-176, December.
    17. Cletus C. Coughlin, 2002. "The controversy over free trade: the gap between economists and the general public," Review, Federal Reserve Bank of St. Louis, issue Jan., pages 1-22.
    18. Melvyn Fuss & Steven Murphy & Leonard Waverman, 1992. "The State of the North American and Japanese Motor Vehicle Industries: A Partially Calibrated Model to Examine the Impacts of Trade Policy Changes," NBER Working Papers 4225, National Bureau of Economic Research, Inc.

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