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Voluntary Export Restraints and Expectations: An Analysis of Export Quotas in Oligopolistic Markets

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  • Yano, Makoto

Abstract

The frequency of export quotas imposed as voluntary export restraints has been increasing. This tends to create the expectation that similar export quotas will be imposed in the future, even if free trade is allowed now. The author analyzes the effect of such an expectation. He demonstrates that if a quota is expected to be imposed on foreign exporting firms, it intensifies the exporting firms' competition in the prequota period. This offsets the protection which the export quota, as a voluntary export restraint, will provide for domestic import-competing firms in the future quota period. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 30 (1989)
Issue (Month): 4 (November)
Pages: 707-23

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Handle: RePEc:ier:iecrev:v:30:y:1989:i:4:p:707-23

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Cited by:
  1. Greaney, Theresa M., 1999. "Manipulating market shares: The indirect effects of voluntary import expansions (VIEs)," Japan and the World Economy, Elsevier, vol. 11(1), pages 95-113, January.
  2. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
  3. Ohashi, Hiroshi, 2002. "Anticipatory effects of voluntary export restraints: a study of home video cassette recorders market, 1978-86," Journal of International Economics, Elsevier, vol. 57(1), pages 83-105, June.

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