TY  - JOUR
AU  - Head,Keith
AU  - Ries,John
AU  - Spencer,Barbara J.
TI  - Vertical Networks and US Auto Parts Exports: Is Japan Different?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9162
PY  - 2002
Y2  - September 2002
UR  - http://www.nber.org/papers/w9162
L1  - http://www.nber.org/papers/w9162.pdf
N1  - Author contact info:
Keith Head
Sauder School of Business, UBC
2053 Main Mall
Vancouver, BC  V6T 1Z2
CANADA
Tel: 6048228492
Fax: 6048228477
E-Mail: keith.head@commerce.ubc.ca

John Ries
University of British Columbia
Faculty of Commerce
2053 Main Mall
Vancouver, BC  V6T1Z2, Canada
Tel: 604-224-8493
E-Mail: john.ries@sauder.ubc.ca

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 develops a model in which upstream network  insiders' conduct relationship specific investment that induces the downstream firm to transact within networks. The scale of destination-country production and part-specific measures of the importance of network relationships and engineering costs are used to explain the pattern of U.S. auto parts exports.  Our results support the prediction that large scale promotes relationship-specific investment and reduces imports. Also, while Japan is a large parts importer, the composition of its imports is shifted away from parts where vertical keiretsu are prominent. Nations hosting U.S.-owned automakers import more U.S. parts.
ER  -