Strategic trade policy, competition, and welfare: the case of voluntary export restraints between Britain and Japan (1971–2002)

Walker, J. T. ORCID: https://orcid.org/0000-0002-3477-0236 (2015) Strategic trade policy, competition, and welfare: the case of voluntary export restraints between Britain and Japan (1971–2002). Oxford Economic Papers, 67 (3). pp. 806-825. ISSN 1464-3812 doi: 10.1093/oep/gpv026

Abstract/Summary

I evaluate the voluntary export restraint placed on Japanese automobile exports from 1977 to 1999 by the UK. I show that the policy failed to assist the British domestic car industry. Instead, UK-based US multi-nationals and Japanese manufacturers were the primary beneficiaries, at a substantial cost to UK consumers. Whilst there are a number of caveats, the policy was on balance damaging to the UK economy in welfare terms.