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Japan’s Market Structure as International Trade Barrier

In: International Trade Policy and European Industry

Author

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  • Marcel Marion

Abstract

Scrutiny of Japan’s market structure, with modifications also existent in Korea, results in the conclusion that it presents a serious obstruction to competition, both from abroad and from domestic newcomers. The economic system explains the behaviour of Japanese producers on foreign markets. Restrictions on competition were decisive for the infallibly strong position of Panasonic and ultimate victory of its video recorder system. The restrictions also resulted in exclusively Japanese trade flows of Japan with Asia. A computation of Customs Duty Equivalence is an effort to quantify the import barrier effect of the distribution system. The protective effect of the distribution system does not only affect foreign exporters but is also a barrier to domestic innovation. The effect of the system equals a prohibitive import tariff of about 40 %. It also has some disruptive effects on export markets. Additionally, this distribution causes a sclerotic economy, where small innovative initiatives are suffocated. This contributes to Japan’s continuous economic depression.

Suggested Citation

  • Marcel Marion, 2014. "Japan’s Market Structure as International Trade Barrier," Contributions to Economics, in: International Trade Policy and European Industry, edition 127, chapter 0, pages 119-140, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-00392-4_7
    DOI: 10.1007/978-3-319-00392-4_7
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