The relationship between Japanese exports to the United States and distributional activities of Japanese affiliates in the U.S. wholesale trade sector is examined by using a sample of forty-four three-digit Japanese exporting industries matched to U.S. industries. The statistical analysis provides evidence supporting the hypothesis that Japanese direct investment in distribution has strongly promoted Japanese exports to the U.S. markets.

This paper examines the influence of price d ecisions by foreign firms on export price decisions by domestic firms. The theor etical analysis develops a general model which hypothesizes a positive relation between export price and foreign price assuming international product differenti ation. This model further suggests that export price depends on foreign structur al traits as they determine foreign price. The empirical analysis, based on a cr oss- section of sixty-nine four-digit manufacturing industries matched between th e United States and Japan, provided support for the hypothesis that foreign mark et structure and foreign pricing affect export pricing and thus the observed pri ce-cost margin.

Hideki Yamawaki, David A. Audretsch, Import Share under International Oligopoly with Differentiated Products: Japanese Imports in U.S. Manufacturing, The Review of Economics and Statistics, Vol. 70, No. 4 (Nov., 1988), pp. 569-579

The authors examine how the strategic aspect of Japanese research and development expenditures and industrial policies affected U.S.-Japanese bilateral trade during the late 1970s, and investigate which component of R&D--expenditures on process innovation, product quality improvements, new products and new technology, or technology transfer--proved to be most effective. They find that while Japanese R&D expenditures have generally promoted Japan's trade advantage, certain components of R&D have proved more effective than other. The depreciation subsidy and special status with the Ministry of International Trade and Industry is positively related to the Japanese trade performance, while legal cartelization status has not had any apparent effect.