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| Author: | Okamuro, H. |
| Title: | Changing subcontracting relations and risk-sharing in Japan: an econometric analysis of the automobile industry |
| Journal: | Hitotsubashi Journal of Economics
1995 : DEC, VOL. 36:2, p. 207-218 |
| Index terms: | CARS JAPAN RISK ANALYSIS |
| Language: | eng |
| Abstract: | Some argue that the Japanese subcontracting system includes a sort of risk sharing mechanism, and is therefore efficient. A survey of previous empirical studies on this subject reveals that their results are not persuasive enough because of some serious estimation problems. This paper proves in an alternative way the existence of and recent changes in risk sharing in subcontracting relations since the mid-80s, using two data sets of Japanese auto parts makers. The results suggest that the auto makers absorb a part of the risk of parts suppliers. |
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