Import quotas and VERs: A comparative analysis in a three-country framework

Import quotas and VERs: A comparative analysis in a three-country framework

Because a VER is inherently discriminatory, the traditional two-country analysis comparing it to a quota is inadequate. This paper adopts a general-equilibrium, three-country approach to compare tariffs, quotas, and VERs; a quota-equivalent VER is defined alternatively in terms of quantity or price....

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Veröffentlicht in:Journal of international economics 1989-02, Vol.26 (1), p.169-178
Hauptverfasser: Dinopoulos, Elias, Kreinin, Mordechai E.
Format: Artikel
Sprache:eng
Schlagworte:
Comparative analysis
Economic models
Economic theory
Exports
Import policy
Import quotas
Protectionism
Restraint
Tariffs
Trade policy
Voluntary
Welfare economics
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Beschreibung
Zusammenfassung:Because a VER is inherently discriminatory, the traditional two-country analysis comparing it to a quota is inadequate. This paper adopts a general-equilibrium, three-country approach to compare tariffs, quotas, and VERs; a quota-equivalent VER is defined alternatively in terms of quantity or price. The welfare of the importing country is higher under a quota and that of the non-restricted exporter is higher under a VER. The welfare comparison for the VER-restricted country is ambiguous, a result which is at variance with conventional wisdom.
ISSN:0022-1996
1873-0353
DOI:10.1016/0022-1996(89)90044-5