Can a Periodic VER Raise Importing Country Welfare?
Several authors have argued that if exporting firms anticipate a voluntary export restriction in a future period, and they expect VERs to be allocated in proportion to past exports, then they have an incentive to dump in the earlier period. In this paper we ask: How does a regime characterized by periodic VERs affect aggregate welfare, consumer welfare and import-competing producer welfare in the importing country: we discover paradoxically, that the answers are all uncertain. However, such a regime always shrinks world-wide efficiency, and normally, for the importer it shrinks aggregate welfare and consumer welfare and raises producer welfare.
Year of publication: |
1996
|
---|---|
Authors: | Gokcekus, Omer ; Tower, Edward |
Institutions: | Duke University, Department of Economics |
Saved in:
Saved in favorites
Similar items by person
-
Is Talk Cheap? Buying Congressional Testimony with Campaign Contributions
Gibbs, Ryan, (2002)
-
Does Trade Liberalization Benefit Young and Old Alike?
Gokcekus, Omer, (1996)
-
An Efficiency Enhancing Minimum Wage
Gokcekus, Omer, (1996)
- More ...