An Analysis of Import Expansion Policies
AbstractVoluntary import expansion is a policy under which one country (Japan) agrees to import a minimum quantity of a commodity from another country (the United States). It turns out that Japan is better off under an equivalent export subsidy; the United States is better off under a voluntary import expansion; and the welfare of a third country is higher under a policy which improves its terms of trade. The "optimum" voluntary import expansion for the United States results in a trade equilibrium point where the U.S. offer curve is of unitary elasticity. The authors also consider the case of a U.S. export which is a Giffen good in Japan. Copyright 1990 by Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 28 (1990)
Issue (Month): 1 (January)
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