Quota Use under VERs: A theoretical framework and some evidence on MFA quota use

In this paper, we propose a framework to study quota use under Voluntary Export Restraints (VERs). Our model unifies three strands of literature in finance and international trade policy research: the equivalence between tariff and quotas/VERs, option pricing, and option exercise. We also present evidence on quota utilisation rates for clothing exports under the Multi-Fibre Arrangement (MFA) from the most important Asian suppliers to the EU.

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Year of publication:	2004
Authors:	Gao, Shumei ; Song, Jihe
Institutions:	Department of Accountancy, Economics and Finance, School of Management and Languages
Subject:	VERs \| quota use \| option-pricing \| first passage time

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series DP Number E03
Classification:	F13 - Commercial Policy; Protection; Promotion; Trade Negotiations ; G12 - Asset Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005649897