Implementing results-oriented trade policies: the case of the US-Japanese auto parts dispute

Kala Krishna; John Morgan

doi:10.1016/S0014-2921(97)00091-3

Implementing results-oriented trade policies: the case of the US-Japanese auto parts dispute

Kala Krishna
, John Morgan

Economics

Research output: Contribution to journal › Article › peer-review

10 Scopus citations

Abstract

Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share target may be implemented with fairly weak informational and administrative requirements. Moreover, such policies can be both pro-competitive and advantageous to US firms.

Original language	English (US)
Pages (from-to)	1443-1467
Number of pages	25
Journal	European Economic Review
Volume	42
Issue number	8
DOIs	https://doi.org/10.1016/S0014-2921(97)00091-3
State	Published - Sep 1 1998

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

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10.1016/S0014-2921(97)00091-3

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abstract = "Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share target may be implemented with fairly weak informational and administrative requirements. Moreover, such policies can be both pro-competitive and advantageous to US firms.",

author = "Kala Krishna and John Morgan",

note = "Funding Information: The authors thank Eric Bond and Elhanan Helpman for their helpful comments, an anonymous referee for useful comments on an earlier draft of the paper, and Ataman Ozyildirim for his able research assistance. Research support from the National Science Foundation, grant SBR-9320825, is gratefully acknowledged by the first author. ",

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N2 - Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share target may be implemented with fairly weak informational and administrative requirements. Moreover, such policies can be both pro-competitive and advantageous to US firms.

AB - Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share target may be implemented with fairly weak informational and administrative requirements. Moreover, such policies can be both pro-competitive and advantageous to US firms.

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Implementing results-oriented trade policies: the case of the US-Japanese auto parts dispute

Abstract

All Science Journal Classification (ASJC) codes

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