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Keiretsu and Relationship-Specific Investment: A Barrier to Trade? Author info | Abstract | Publisher info | Download info | Related research | Statistics Spencer, Barbara J
Qiu, Larry D
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This article develops a model of informal procurement within Japanese keiretsu so as to consider effects on intermediate-good imports such as auto parts. Parts-suppliers make relationship specific investments that benefit the automaker and prices are determined by bargaining after investment has been sunk. Although this investment raises efficiency, it limits the range of imports to less important parts, such as tailpipes, and it is possible that no parts are imported, despite lower foreign costs. Lack of information concerning investment rents combined with counterintuitive responses of imports to changes in output and costs could create unwarranted perceptions of a trade barrier.
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Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review .
Volume (Year): 42 (2001)
Issue (Month): 4 (November)
Pages: 871-901
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Handle: RePEc:ier:iecrev:v:42:y:2001:i:4:p:871-901Contact details of provider: Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297 Phone: (215) 898-8487 Fax: (215) 573-2057 Email: Web page: http://www.ssc.upenn.edu/econ/iereview/ More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Spencer, Barbara J. & Jones, Ronald W., 1992.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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"Vertical Foreclosure and Specific Investments ,"
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"Contractual Versus Generic Outsourcing: The Role of Proximity ,"
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Larry D. Qiu & Barbara J. Spencer, 2001.
"Keiretsu and Relationship-Specific Investment: Implications for Market-Opening Trade Policy ,"
NBER Working Papers
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Other versions: Vello Vensel, 2004.
"Operation of Business Supporting Networks: Evidence from an EU Candidate Country ,"
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