TY  - JOUR
AU  - Swenson, Deborah L
TI  - Explaining Domestic Content: Evidence from Japanese and U.S. Auto Production in the U.S.
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5495
PY  - 1996
Y2  - March 1996
DO  - 10.3386/w5495
UR  - http://www.nber.org/papers/w5495
L1  - http://www.nber.org/papers/w5495.pdf
N1  - Author contact info:
Deborah L. Swenson
Department of Economics
University of California, Davis
Davis, CA 95616
Tel: 530/752-1569
Fax: 530/752-9382
E-Mail: deswenson@ucdavis.edu
M1  - published as Deborah L. Swenson. "Explaining Domestic Content: Evidence from Japanese and U.S. Automobile Production in the United States," in Robert C. Feenstra, editor, "The Effects of U.S. Trade Protection and Promotion Policies" University of Chicago Press (1997)

AB  - This paper studies the domestic content decisions of auto makers in the U.S. between 1984 and 1993 using foreign trade zone activity as a tool by which one can observe individual sourcing and production. The results show that although the domestic content of Japanese firms is rising, differences are not being eliminated completely.  Also, the apparent elasticity of substitution is lower for Japanese than for U.S. firms.  These results suggest that although transplant production may reduce the U.S. automotive deficit with Japan, transplant production will not cause its elimination.
ER  -