Date Thesis Awarded

5-2020

Document Type

Honors Thesis

Degree Name

Bachelors of Arts (BA)

Department

Economics

Advisor

John Lopresti

Committee Members

Nathaniel Throckmorton

Rani Mullen

Abstract

This paper analyzes the impacts of the 1981 voluntary export restraint (VER) on important economic welfare indicators. The indicators include employment shares, average wages, and population growth measured on a commuting zone (CZ) level and were utilized as a means to assess trade-flow exposure. CZ level data allows us to capture the effects of a national policy on local economies. In addition, this paper evaluates the impact of the 1981 VER on Japanese exports to the United States (US). Two regression models use census data as well trade-flow data from 1970s to 1980s. A trade-flow exposure model shows that the flow of automobiles from Japan to US, had a small, but statistically significant, impact on an average CZ’s employment share and population growth. However, there was no significant change in average wages, across all industries or within manufacturing industries. Following the VER, the trade-flow model demonstrates that there was a significant increase in the real value of passenger cars from Japan to the US.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

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