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On Why Voluntary Export Restraints Are Voluntary

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  • John A. Karikari

Abstract

This paper reexamines why voluntary export restraints are voluntary. It is shown that the results depend crucially on whether domestic goods and imports are regarded as strategic substitutes or strategic complements. This, in turn, depends on the following conditions: the form of the demand and the cost functions, and the nature of quantity competition. In particular, with linear demands and constant marginal costs, voluntary export restraints are voluntary; they are not involuntary.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 24 (1991)
Issue (Month): 1 (February)
Pages: 228-33

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Handle: RePEc:cje:issued:v:24:y:1991:i:1:p:228-33

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Cited by:
  1. Bouet, Antoine, 2001. "Research and development, voluntary export restriction and tariffs," European Economic Review, Elsevier, vol. 45(2), pages 323-336, February.
  2. Siroën, Jean-Marc, . "Choix de la politique commerciale dans le cas de la concurrence imparfaite," Economics Papers from University Paris Dauphine 123456789/6629, Paris Dauphine University.

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