TY - JOUR AU - Ito, Takatoshi AU - Maruyama, Masayoshi TI - Is the Japanese Distribution System Really Inefficient? JF - National Bureau of Economic Research Working Paper Series VL - No. 3306 PY - 1990 Y2 - March 1990 DO - 10.3386/w3306 UR - http://www.nber.org/papers/w3306 L1 - http://www.nber.org/papers/w3306.pdf N1 - Author contact info: Takatoshi Ito Columbia University School of International and Public Affairs International Affairs Building Room 927, (MC 3333) 420 West 118th Street New York, NY 10027 Tel: 212-854-6401 Fax: 212-749-1497 E-Mail: ti2164@columbia.edu Masayoshi Maruyama M1 - published as Takatoshi Ito, Masayoshi Maruyama. "Is the Japanese Distribution System Really Inefficient?," in Paul Krugman, editor, "Trade with Japan: Has the Door Opened Wider?" University of Chicago Press, 1991 (1991) AB - This paper investigates the efficiency of the Japanese distribution system, measured by the distribution margin. Most of the discussions on the Japanese distribution system have so far relied on institutional descriptions and anecdotal evidence, failing to substantiate the case. The present paper will show that the Japanese and U.S. distribution sectors are about the same in terms of value added and distribution margins. Therefore, it is not true that the distribution sector adds up unnecessary distribution costs or earns monopolistic operating profits. This paper will not address a question whether the distribution system is acting as a non-tariff barrier. Thus, even if the distribution sector in Japan is judged to be "efficient," it leaves open a possibility that the distribution system works as a barrier to potential new entrants from both home and foreign manufacturers. ER -