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The Impact of Japanese Auto VER's on the US and Japanese Economies

F. Gerard Adams, Byron Gangnes () and Gene Huang

No 199309, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: The voluntary export restraint agreement (VER) limiting Japanese exports of cars to the US is evaluated. Extending a previous article dealing with Japanese transplant auto factories in the US, the authors examine impacts of alternative responses to the VER on the micro and macro level. The VER will result in a modest improvement in the bilateral trade balance. It will provide a small macroeconomic stimulus to the US economy, but will affect output in Japan adversely.

Date: 1993
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