An Overview of the Japanese Distribution System: The Case of the Automobile Industry
IMF Working Papers, March 1, 1994
Source details
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- An Overview of the Japanese Distribution System: The Case of the Automobile Industry
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Bibliographic details
- Authors: Sayuri Shirai
- Published: March 1, 1994
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451844313.001
Summary
- Paper surveys recent literature on the Japanese distribution system to assess two propositions:
- The system is inefficient.
- Prices of imported products tend to be higher in Japan than in other markets.
- Most of the literature demonstrates that the system is efficient.
- Efficiency has not necessarily resulted in high social welfare:
- Consumers have had limited access to various product lines.
- Consumers have paid high prices for some products.
- The paper examines the distribution system in the automobile industry to understand impacts on price differentials.
Key findings on efficiency and welfare
- Majority of literature: Japanese distribution system is efficient.
- Efficiency vs. social welfare:
- Limited product-line access for consumers.
- Higher prices for some products despite system efficiency.
Automobile industry focus and implications
- The automobile industry is used as a case study to illustrate how the distribution system affects price differentials for imported products.
- The analysis aims to promote understanding about:
- Price differentials between domestic and imported automobiles.
- Mechanisms in the distribution system that can restrict product variety or raise consumer prices.
Subjects and keywords
- Subjects: Automobile industry, Economic sectors, Expenditure, Foreign corporations, Imports, International trade, Public expenditure review
- Keywords: Automobile industry, automobile parts price survey, car dealer, consumer goods, dealer repair shops, distribution margin, Europe, Foreign corporations, import penetration, imported product, imported products, Imports, price survey, product price, product variety, Public expenditure review, representative importer, sales volume, sales-distribution keiretsu, trade import, WP
Source: Sayuri Shirai, "An Overview of the Japanese Distribution System: The Case of the Automobile Industry", IMF Working Papers 1994, 026 (1994), March 1, 1994.