| For the last couple of decades, Japan has been criticized about her low level of manufactured imports, with her nontariff barriers often cited as its cause. The purpose of this study is to examine the trends of Japan's imports, and to assess empirically the role of Japan's nontariff barriers (NTBs) in manufactured imports.;Although Japan no longer uses formal barriers to protect domestic industries, there are informal barriers that tend to distort Japan's trade flow. Some of them seem to significantly restrict manufactured imports.;Close examination of the patterns of Japan's manufactured imports reveal their changes during the 1986-88 period. However, Japan's manufactured imports relative to her total domestic consumption hardly increased. Together with Japan's growing trade surplus, her stable import penetration ratios might intensify foreign criticism about Japan's trade barriers.;There are two approaches to assess the role of Japan's NTBs in trade: micro- and macro-approaches. Previous studies used only a macro-approach to assess it. This study uses both approaches.;Using a micro-approach to assess the role of Japanese NTBs reveals that the kinds and effects of NTBs vary across the industries. Although foreign auto parts suppliers consider Japanese vertical Keiretsu as a formidable barrier to trade in car components, they should not do so because Japanese auto assembling and parts supply firms seem to enhance efficiency by vertically integrating. Besides, there is no statistical evidence that the strong tie significantly reduces imports. As for the automobile industry, car imports were restricted by a variety of governmental and private measures in the past; however, by 1989, the Japanese car market has been liberalized. On the other hand, in the textile and clothing industry, some explicit government restrictions on imports still exist and demand for futher protection is rising. Moreover, private barriers, such as the horizontal corporate grouping and the complicated distribution system, also tend to restrict textile and clothing imports.;Despite the existence of these barriers in Japan, there is no statistical evidence that their overall effects on imports are significant, which means that the further removal of nontariff barriers alone may not drastically expand manufactured imports. |
