Keiretsu and Relationship-Specific Investment: Implications for Market-Opening Trade Policy / Larry D. Qiu, Barbara J. Spencer.

Format:

Book

Author/Creator:

Qiu, Larry D.

Contributor:

National Bureau of Economic Research.

Spencer, Barbara J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8279.

NBER working paper series no. w8279

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Keiretsu and Relationship-Specific Investment

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

This paper considers the implications of relationship-specific investment within keiretsu for policies aimed at opening the Japanese market for intermediate goods, such as auto parts. Both VIEs applied to parts and VERs restricting Japanese exports of autos cause the keiretsu to import a wider range of parts, but of a relatively unimportant type, such as seat covers. Since keiretsu investment and output fall, the total value of U.S. parts exports may actually fall. For a given value of these exports, a VIE is less costly for U.S. consumers and Japanese producers, but a VER is preferred by U.S. automakers.

Notes:

Print version record

May 2001.