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World Exports of New and Used Automobiles: A Gravity Model Comparison among the European Union, Japan and the United States

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  • Danilo Pelletiere
  • Kenneth Reinert

Abstract

This paper considers new and used automobile exports of the European Union, Japan and the United States within a gravity model framework. This standard framework has similar explanatory power for the new and used automobile exports of the European Union and the United States, as well as for the new automobile exports of Japan, but not for Japan's used automobile exports, a finding the paper associates with the importance of left-hand driving in determining the markets for Japan's used (but not 'made to order' new) automobile exports. The paper concludes that, while used automobiles are somewhat more important to lower income markets, controlling for discrimination and other factors, used automobile trade clearly supplements new automobile trade from the prospective of the importing country.

Suggested Citation

  • Danilo Pelletiere & Kenneth Reinert, 2010. "World Exports of New and Used Automobiles: A Gravity Model Comparison among the European Union, Japan and the United States," International Economic Journal, Taylor & Francis Journals, vol. 24(1), pages 103-110.
    • Handle: RePEc:taf:intecj:v:24:y:2010:i:1:p:103-110
    DOI: 10.1080/10168731003589709
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    References listed on IDEAS

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    6. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    7. Danilo Pelletiere & Kenneth A. Reinert, 2004. "Used automobile protection and trade: Gravity and ordered probit analysis," Empirical Economics, Springer, vol. 29(4), pages 737-751, December.
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    Cited by:

    1. Mathias Juust & Priit Vahter & Urmas Varblane, 2017. "The Trade Effects Of The Eu-South Korea Free Trade Agreement In The Automotive Industry," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 105, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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