Japanese FDI into the U.S. automobile industry: An empirical investigation

Co, Catherine Y.

doi:10.1016/s0922-1425(96)00237-x

Cited by 11 publications

(14 citation statements)

References 23 publications

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“…Therefore, we hypothesize that in the period before the VRA the yen strengthens with increased demand for Japanese vehicles. This is opposite of the sign hypothesized by Co (1997) because we are separating this period where the Japanese automobile exporters took an aggressive sales penetration strategy, from the period after the VRA. We use the yen-for-dollar exchange rate as our measure of the relative strength of the two currencies.…”

Section: Hypothesis Developmentmentioning

confidence: 63%

“…In such an environment, a weakening of the yen (a rise in the yen-for-dollar exchange rate), should lead to higher imports of Japanese vehicles. Therefore, in the period after the imposition of the VRA, we expect the positive relationship proposed by Co (1997) between the yen-for-dollar exchange rate and import demand to hold. The alternative form of this hypothesis is:…”

Section: Hypothesis Developmentmentioning

confidence: 93%

“…In her study of Japanese automotive imports into the United Sates between 1974 through 1992, Co (1997) found a positive relationship between the yen-for-dollar exchange rate and imports. Her study is at the firm level, while ours is at the aggregate level.…”

Section: Sensitivity Analysis Of Exchange Ratesmentioning

confidence: 98%

“…More recently, Co (1997) analyzed the relationship between the yen-for-dollar exchange rate and Japanese vehicle imports into the United States at the firm level during the years 1974{1992. The period she studies cuts across the three periods that we analyze before, during and after the Voluntary Restraint Agreements.…”

mentioning

confidence: 99%

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Effect of Exchange Rates and Gasoline Prices on US Imports of Japanese Automobiles

Lord

Saito

2010

The International Trade Journal

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We analyze the effects of gasoline prices and exchange rates on Japanese automobile imports to the United States between 1970 and 2004. We test the relationships before, during, and after the Voluntary Restraint Agreement placed on Japanese imports between 1981 and 1988. We also control for general demand for automobiles and domestically manufactured Japanese vehicles. As expected, we found that demand for Japanese imports is positively correlated with the price of gasoline. Before 1988 the demand for Japanese imports contributed to a strengthening of the yen. But after, a positive relationship between the yen-for-dollar exchange rate and imports has prevailed.

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Section: Hypothesis Developmentmentioning

confidence: 63%

Section: Hypothesis Developmentmentioning

confidence: 93%

Section: Sensitivity Analysis Of Exchange Ratesmentioning

confidence: 98%

mentioning

confidence: 99%

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Effect of Exchange Rates and Gasoline Prices on US Imports of Japanese Automobiles

Lord

Saito

2010

The International Trade Journal

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“…According to the proximity-concentration trade-off hypothesis, FDI and exports are substitutes (Belderbos and Sleuwaegen, 1998;Gopinath et al1999.). In contrast, the spillover effects of multinational corporations on productivity of local firms in the host countries resulting from vertical FDI give rise to the complementarity between FDI and exports (Pfaffermayer, 1994;Brainard, 1997;Co, 1997;Marchant et al, 1999;Clausing, 2000;Jensen, 2002;Wilson, 2006.) In a second line of inquiry, which reflects our second contribution to the literature, we test the presence of third-country effects.…”

Section: Figure 1: Trends In Fdi Outflows: a Regional Comparisonmentioning

confidence: 99%

Spatial determinants of U.S. FDI and exports in OECD countries

Boubacar

2016

Economic Systems

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The interaction between trade and FDI: The CEECs experience

Albulescu

Goyeau

2019

Int Econ Econ Policy

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Inside the EU, the commercial integration of the CEE countries has gained remarkable momentum before the crisis appearance, but it has slightly slowed down afterwards.Consequently, the interest in identifying the factors supporting the commercial integration process is high. Recent findings in the new trade theory suggest that FDI influence the trade intensity but the studies approaching this relationship for the CEE countries present mixed evidence, and investigate the commercial integration of CEE countries with the old EU members. Against this background, the purpose of this paper is to assess the CEE countries' intra-integration, focusing on the Czech Republic, Hungary, Poland and the Slovak Republic.For each country we employ a panel gravitational model for the bilateral trade and FDI, considering its interactions with the other three countries in the sample on the one hand, and with the three EU main commercial partners on the other hand. We investigate different facets of the trade -FDI nexus, resorting to a fixed effects model, a random effects model, as well as to an instrumental variable estimator, over the period 2000-2013. Our results suggest that outward FDI sustains the CEE countries' commercial integration, while inward FDI has no significant effect. In all the cases a complementarity effect between trade and FDI is documented, which is stronger for the CEE countries' historical trade partners. Consequently, these findings show that CEE countries' policymakers are interested in encouraging the outward FDI toward their neighbour countries in order to increase the commercial integration.with a trade-off between focusing on specific countries for which data are in general available for a longer period, or including in the sample more CEE countries, but reducing thus the 3 number of observations. We therefore chose the first option and we test the trade -FDI nexus for the Czech Republic, Hungary, Poland and the Slovak Republic (CEE-4), using Organisation for Economic Co-operation and Development (OECD) statistics for the period 2000-2013. The OECD statistics contain information about the bilateral investments between the OECD members. Six CEE countries are OECD members, namely the Czech Republic, Estonia, Hungary, Poland, the Slovak Republic and Slovenia. However, Slovenia and Estonia are excluded from our sample because of insufficient number of observations. Moreover, we are forced to start with the year 2000 as no previous data are available for the Slovak Republic's inward FDI before this year 1 . The selected countries (to a smaller extent Poland), represent the countries with the highest level of trade openness in the CEE group of countries. According to the World Bank statistics (World Development Indicators), over the period 2000-2013, the trade openness in CEE-4 is above the average level of the entire group of CEE countries (118% compared to 103%), and considerably above the EU level (72%). At the same time, CEE-4 is historically considered as representing the advanced group of CEE countries ...

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Japanese FDI into the U.S. automobile industry: An empirical investigation

Cited by 11 publications

References 23 publications

Effect of Exchange Rates and Gasoline Prices on US Imports of Japanese Automobiles

Effect of Exchange Rates and Gasoline Prices on US Imports of Japanese Automobiles

Spatial determinants of U.S. FDI and exports in OECD countries

The interaction between trade and FDI: The CEECs experience

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