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Pricing policy and quality upgrading in the Swedish car market: Do import surveillance and exchange rate instability matter?

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  • Yves Bourdet

Abstract

Recent years have seen an increased use of quantitative restrictions in passenger car trade. In this paper we investigate the impact of import surveillance on product and pricing policies of car manufactures in the Swedish car market over the period 1986–1989. Evidence is found of substantal upgrading in Japanese (and German) car supply. The evidence on changes in quality-adjusted prices is less conclusive. In addition it is found that exchange rate changes were not passed through to car prices. Copyright Kluwer Academic Publishers 1991

Suggested Citation

  • Yves Bourdet, 1991. "Pricing policy and quality upgrading in the Swedish car market: Do import surveillance and exchange rate instability matter?," Open Economies Review, Springer, vol. 2(3), pages 255-274, October.
    • Handle: RePEc:kap:openec:v:2:y:1991:i:3:p:255-274
    DOI: 10.1007/BF01886144
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    References listed on IDEAS

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    1. Robert C. Feenstra, 1986. "Gains from Trade in Differentiated Products: Japanese Compact Trucks," NBER Working Papers 1978, National Bureau of Economic Research, Inc.
    2. de Melo, Jaime & Messerlin, Patrick, 1988. "Effects of European VERs on Japanese autos," Policy Research Working Paper Series 21, The World Bank.
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    7. Melo, Jaime de & Messerlin, Patrick A., 1988. "Price, quality and welfare effects of European VERs on Japanese autos," European Economic Review, Elsevier, vol. 32(7), pages 1527-1546, September.
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    10. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
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    12. Aw, Bee Yan & Roberts, Mark J., 1986. "Measuring quality change in quota-constrained import markets: The Case of U.S. Footwear," Journal of International Economics, Elsevier, vol. 21(1-2), pages 45-60, August.
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    2. Arawomo, Damilola F. & Osigwe, Augustine C., 2016. "Nexus of fuel consumption, car features and car prices: Evidence from major institutions in Ibadan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1220-1228.

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