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

Keith Head, John Ries () and Barbara Spencer

No 9162, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper develops a model in which upstream network insiders' conduct relationship specific investment that induces the downstream firm to transact within networks. The scale of destination-country production and part-specific measures of the importance of network relationships and engineering costs are used to explain the pattern of U.S. auto parts exports. Our results support the prediction that large scale promotes relationship-specific investment and reduces imports. Also, while Japan is a large parts importer, the composition of its imports is shifted away from parts where vertical keiretsu are prominent. Nations hosting U.S.-owned automakers import more U.S. parts.

JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2002-09
New Economics Papers: this item is included in nep-sea
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Keith Head & John Ries & Barbara J. Spencer, 2004. "Vertical Networks and US Auto Parts Exports: Is Japan Different?," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 13(1), pages 37-67, 03.

Downloads: (external link)
http://www.nber.org/papers/w9162.pdf (application/pdf)

Related works:
Journal Article: Vertical Networks and US Auto Parts Exports: Is Japan Different? (2004)
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:nbr:nberwo:9162

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9162

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().