TY  - JOUR
AU  - Qiu,Larry D.
AU  - Spencer,Barbara J.
TI  - Keiretsu and Relationship-Specific Investment: Implications for Market-Opening Trade Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8279
PY  - 2001
Y2  - May 2001
UR  - http://www.nber.org/papers/w8279
L1  - http://www.nber.org/papers/w8279.pdf
N1  - Author contact info:
Barbara J. Spencer
University of British Columbia
Sauder School of Business
2053 Main Mall
Vancouver, BC  V6T 1Z2
CANADA
Tel: 604/822-8479
Fax: 604/822-8477
E-Mail: barbara.spencer@sauder.ubc.ca
AB  - 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.
ER  -