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Price, Quality and Welfare Effects of European VERs on Japanese Autos

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  • Jaime de Melo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Patrick Messerlin

Abstract

This paper examines the impact of the VERs negotiated by the U.K., France and Germany with Japanese car makers. Market share analysis shows that the VERs did not arrest the declines in apparent consumption by local producers. Further analysis from a sample of Japanese (and other) cars sold on the French and German markets indicates quality upgrading between 1981 and 1983. The data also suggest that the VER was strictly binding in France starting around 1984 but not in Germany until 1985, the end of the sample period. Finally, the paper shows that the French, German and Japanese car producers supplied an increasingly similar product mix on the French market throughout the sample period (1979–1985) but the Italian producers shifted towards a lower (fiscal) horsepower mix.

Suggested Citation

  • Jaime de Melo & Patrick Messerlin, 1988. "Price, Quality and Welfare Effects of European VERs on Japanese Autos," Post-Print hal-03393287, HAL.
  • Handle: RePEc:hal:journl:hal-03393287
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    Cited by:

    1. 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.
    2. Manuchehr Irandoust, 1996. "An empirical analysis of market performance in the car industry," Open Economies Review, Springer, vol. 7(4), pages 327-348, October.
    3. Douglas Nelson, 1996. "The Political Economy of U.S. Automobile Protection," NBER Chapters, in: The Political Economy of American Trade Policy, pages 133-196, National Bureau of Economic Research, Inc.
    4. Dirk De Bièvre & Emile van Ommeren, 2021. "Multilateralism, Bilateralism and Institutional Choice: The Political Economy of Regime Complexes in International Trade Policy," Global Policy, London School of Economics and Political Science, vol. 12(S4), pages 14-24, May.
    5. Chad P. Bown & Rachel McCulloch, 2012. "Antidumping and Market Competition: Implications for Emerging Economies," Working Papers 50, Brandeis University, Department of Economics and International Business School.
    6. Irandoust, Manuchehr, 1999. "Market structure and market shares in the car industry," Japan and the World Economy, Elsevier, vol. 11(4), pages 531-544, December.
    7. Irandoust, Manuchehr, 1998. "Pricing Policy in the Swedish Automobile Market," Journal of Economics and Business, Elsevier, vol. 50(3), pages 309-317, May.
    8. repec:dau:papers:123456789/6629 is not listed on IDEAS
    9. Jean-François Loué & Patrick Messerlin, 1993. "Le Grand marché et le commerce extérieur," Revue de l'OFCE, Programme National Persée, vol. 43(1), pages 243-272.

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