Implementing Results-Oriented Trade Policies: The Case of the Us-Japanese Auto Parts Dispute

58 Pages Posted: 7 Sep 2000 Last revised: 3 Oct 2010

See all articles by Kala Krishna

Kala Krishna

Pennsylvania State University - Department of Economics; National Bureau of Economic Research (NBER)

John Morgan

University of California, Berkeley - Economic Analysis & Policy Group

Date Written: July 1996

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 may be implemented with fairly weak informa- tional and administrative requirements. Moreover, such policies can be both pro-competitive and advatageous to US firms.

Suggested Citation

Krishna, Kala and Morgan, John, Implementing Results-Oriented Trade Policies: The Case of the Us-Japanese Auto Parts Dispute (July 1996). NBER Working Paper No. w5680. Available at SSRN: https://ssrn.com/abstract=225574

Kala Krishna (Contact Author)

Pennsylvania State University - Department of Economics ( email )

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John Morgan

University of California, Berkeley - Economic Analysis & Policy Group ( email )

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United States
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810-885-5959 (Fax)

HOME PAGE: http://faculty.haas.berkeley.edu/rjmorgan/

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