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Comparing quotas with VERs: A three-region, North-South-NICs macroeconomic analysis

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  • S. Murshed
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    Abstract

    The paper presents a three-region macro-economic model of the North, South and NICs. Discriminatory commercial policy is undertaken by the North against the South and the NICs: a quota is used against the former and a VER against the latter. Contrary to most of the existing literature on macro-commercial policy, the initiator of the policy (the North) could gain from such a mixed commercial policy in terms of output and employment. This would normally be at the expense of the South (lower terms of trade), whereas the terms of trade for the NICs could improve, although not necessarily. Copyright Kluwer Academic Publishers 1992

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    File URL: http://hdl.handle.net/10.1007/BF01886152
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    Bibliographic Info

    Article provided by Springer in its journal Open Economies Review.

    Volume (Year): 3 (1992)
    Issue (Month): 3 (October)
    Pages: 255-270

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    Handle: RePEc:kap:openec:v:3:y:1992:i:3:p:255-270

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    Web page: http://www.springerlink.com/link.asp?id=100323

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    Keywords: macro-commercial policy; quotas versus VERs; North-South-NICs;

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    1. Kanbur, Ravi & Vines, David, 1984. "North-South Interaction and Commod Control," CEPR Discussion Papers 8, C.E.P.R. Discussion Papers.
    2. Tower, Edward, 1973. "Commercial Policy Under Fixed and Flexible Exchange Rates," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 436-54, August.
    3. Krugman, Paul, 1982. "The macroeconomics of protection with a floating exchange rate," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 16(1), pages 141-182, January.
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