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The impact of Japanese auto VRAs on the U.S. and Japanese economies

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  • Gerard Adams, F.
  • Gangnes, Byron
  • Huang, Gene

Abstract

The voluntary export restraint agreement (VER) limiting Japanese exports of cars to the US is evaluated. Extending a previous article dealing with Japanese transplant auto factories in the US, the authors examine impacts of alternative responses to the VER on the micro and macro level. The VER will result in a modest improvement in the bilateral trade balance. It will provide a small macroeconomic stimulus to the US economy, but will affect output in Japan adversely.
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  • Gerard Adams, F. & Gangnes, Byron & Huang, Gene, 1994. "The impact of Japanese auto VRAs on the U.S. and Japanese economies," Journal of Policy Modeling, Elsevier, vol. 16(2), pages 147-164, April.
    • Handle: RePEc:eee:jpolmo:v:16:y:1994:i:2:p:147-164
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    Cited by:

    1. Bouët, Antoine & Fontagné, Lionel & Mimouni, Mondher & Von Kirchbach, Friedrich, 2002. "Market Access Maps for GTAP: A Bilateral Measure of Merchandise Trade Protection," Conference papers 331018, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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