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Did U.S. Safeguard Resuscitate Harley Davidson in the 1980s?

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  • Taiju KITANO
  • Hiroshi OHASHI

Abstract

This paper examines the effect of U.S. safeguard on motorcycle imports in the period from 1983 to 1987. After receiving the temporary protection with the maximum tariff of more than 45%, Harley Davidson drastically recovered its sales. The paper conducts structural analyses of the motorcycle market, and finds that the safeguard contributed merely a fraction of Harley Davidson's profit. This finding is primarily due to small cross-price elasticity of demand between American and Japanese motorcycle models.

Suggested Citation

  • Taiju KITANO & Hiroshi OHASHI, 2007. "Did U.S. Safeguard Resuscitate Harley Davidson in the 1980s?," Discussion papers 07026, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:07026
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    File URL: https://www.rieti.go.jp/jp/publications/dp/07e026.pdf
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    References listed on IDEAS

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    Cited by:

    1. Takechi, Kazutaka, 2020. "Do domestic producers benefit from safeguards? The case of a Japanese safeguard on Chinese vegetable imports in 2001," Japan and the World Economy, Elsevier, vol. 55(C).
    2. Waterson, Michael, 2025. "Keith Cowling and industrial policy," International Journal of Industrial Organization, Elsevier, vol. 100(C).
    3. Chung, Sunghoon & Lee, Joonhyung & Osang, Thomas, 2016. "Did China tire safeguard save U.S. workers?," European Economic Review, Elsevier, vol. 85(C), pages 22-38.
    4. Deborah L. Swenson, 2012. "The Influence of Chinese Trade Policy on Automobile Assembly and Parts," CESifo Economic Studies, CESifo Group, vol. 58(4), pages 703-730, December.
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    6. Taiju Kitano, 2022. "Environmental Policy as a De Facto Industrial Policy: Evidence from the Japanese Car Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(4), pages 511-548, June.

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