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Should Export-Share Requirements Be Implemented under Quota Protection?

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  • Chi-Chur Chao
  • Eden S. H. Yu

Abstract

In this paper, the authors develop a model to analyze the effects of export-share requirements when a quota is in place. They show that, when foreign capital is located in specific economic activity zones identified with the importable sector, an increase in export-share requirements reduces welfare, owing to the price-induced higher payments to foreign capital.

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Bibliographic Info

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

Volume (Year): 27 (1994)
Issue (Month): 3 (August)
Pages: 568-79

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Handle: RePEc:cje:issued:v:27:y:1994:i:3:p:568-79

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Cited by:
  1. Ingene, Charles A. & Yu, Eden S. H. & Chao, Chi-Chur, 2004. "The impact of export share requirements under production uncertainty," International Review of Economics & Finance, Elsevier, vol. 13(2), pages 201-215.
  2. Chao, Chi-Chur & Yu, Eden S. H., 2003. "Export-performance requirements, foreign investment quotas, and welfare in a small dynamic economy," Journal of Development Economics, Elsevier, vol. 72(1), pages 387-400, October.
  3. Marjit, Sugata & Kar, Saibal & Beladi, Hamid, 2007. "Protectionary bias in agriculture: A pure economic argument," Ecological Economics, Elsevier, vol. 63(1), pages 160-164, June.
  4. Chao, Chi-Chur & Yu, Eden S. H., 1998. "Export-share requirements, trade balances and welfare: a two-period analysis," Journal of Development Economics, Elsevier, vol. 56(1), pages 217-228, June.

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