Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute
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NBER Working Paper No. 5680
Issued in July 1996
NBER Program(s): ITI
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 may be implemented with fairly weak informa- tional and administrative requirements. Moreover, such policies can be both pro-competitive and advatageous to US firms.
Published: European Economic Review, Vol.42, no.8 (October 1998): 1443-1467.
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