Vertical Networks and US Auto Parts Exports: Is Japan Different?

Keith Head, John Ries () and Barbara Spencer

Journal of Economics & Management Strategy, 2004, vol. 13, issue 1, 37-67

Abstract: In a model where upstream network insiders conduct relationship‐specific investment, downstream firms have an incentive to transact within networks. Evidence from US auto parts exports to 26 auto‐producing countries supports key predictions of the model. Greater production scale for assemblers lowers imported parts per car. Vertical networks matter in two ways. First, although Japan's average import levels are not unusually low, non‐Japanese suppliers have relatively low market penetration for parts categories where vertical keiretsu are prominent in Japan. Second, US‐owned assembly abroad and foreign‐owned parts production in the US both stimulate parts exports.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
https://doi.org/10.1111/j.1430-9134.2004.00003.x

Related works:
Working Paper: Vertical Networks and US Auto Parts Exports: Is Japan Different? (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jemstr:v:13:y:2004:i:1:p:37-67

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().