1995 Fiscal Year Final Research Report Summary
Quasi-Vertical Intra-Industry Trade in Automobile and Automotive Parts Industries Between Japan and NAETA
| Project/Area Number |
06831004
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| Research Category |
Grant-in-Aid for General Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Research Field |
国際経済
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| Research Institution | Tohoku Gakuin University |
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Principal Investigator |
KOSHIBA Tesshu Tohoku Gakuin Univ.Economics Dept.Prof., 経済学部, 教授 (20048812)
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| Project Period (FY) |
1994 – 1995
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| Keywords | quasi-vertical Intra-industry trade / subcontracting system / NAFTA / automobile and automotive parts industry / foreign direct investment (FDI) / regionalism / regional economic integration / trade imbalance between Japan and the U.S. |
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| Research Abstract |
The purpose of this paper is to study quasi-vertical intra-industry trade and transactions of Japanese automobile and automotive parts manufacturers between Japan and NAFTA countries.
Important findings of this research are as follows :
1.Theoretical aspects of such free trade agreement as NAFTA are formulated by a graphic model of a one-good three-country setting. Unlike the old EC,NAFTA consisting of developed and developing countries has both quasi-vertical intra-industry trade & transactions and horizontal trade & transactions. Both of these play important roles on the economic development of the region. The trade structure of NAFTA,unfortunately, is not open to the other countries.
2.The formation of NAFTA brought merits to the members, because quasi-vertical intra-industry trade and transactions work effectively in NAFTA.The internalization of trade and transactions of this type within the territory has more developed.
3.This is one of the most important reasons from the viewpoint of supply why Japanese auto and automotive parts manufacturers have invested huge amount of money into NAFTA to operate their transplants in order to enjoy internalized advantage. In 1992, two years before the formation of integration, in fact, the number of automobiles produced by Japanese tansplants in the U.S.surpassed the imported cars from Japan. This means that Japanese auto and automotive parts manufactures in NAFTA have much developed quasi-vertical intra-industry trade and transactions in the territory.
4.The expansion of NAFTA's market for automobiles and automotive parts, from the viewpoint of demand, lures inward foreign direct investment not only within the members but also from the other countries, particularly from Japan. This has made the NAFTA economy more dynamic.
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