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International Quota Transfer and Intermediate Goods

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  • Aldanondo, Ana Maria
  • Puertolas, Javier
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    Abstract

    In this paper we use a general equilibrium model to examine the effects of international quota transfer when a quota restricts world commodity production whilst the trade in an intermediate good is not regulated. The analysis shows that, when the quota regime is not internationally transferable, intermediate input trade substitutes for final good trade. In these circumstances, the distortions are lower than expected. International quota transfer increases world welfare proportionally to quota rent gap. Welfare distribution is also conditioned by commodity terms of trade and, particularly, by the outcome of the intermediate good price.

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    File URL: http://purl.umn.edu/24851
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24851.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24851

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    Related research

    Keywords: Production quota; international trade; intermediate goods; International Relations/Trade;

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    1. Fulginiti, Lilyan E. & Perrin, Richard, 1993. "Theory and Measurement of Producer Response Under Quotas (The)," Staff General Research Papers 778, Iowa State University, Department of Economics.
    2. Sylvain Larivière & Karl Meilke, 1999. "An Assessment of Partial Dairy Trade Liberalization on the U.S., EU–15 and Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 59-73, December.
    3. Neary, J.P & Roberts, K.W.S, 1978. "The Theory of Household Behaviour under Rationing," The Warwick Economics Research Paper Series (TWERPS) 132, University of Warwick, Department of Economics.
    4. Bureau, Jean-Christophe, et al, 1997. "Quota Mobility in the European Sugar Regime," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 1-30.
    5. Ian W.H. Parry, 1999. "Agricultural Policies in the Presence of Distorting Taxes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 212-230.
    6. Fulginiti, Lilyan & Perrin, Richard, 1993. "The Theory and Measurement of Producer Response under Quotas," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 97-106, February.
    7. Jones, R.W. & Spencer, B.J., 1989. "Trade And Protection In Vertically Related Markets," RCER Working Papers 195, University of Rochester - Center for Economic Research (RCER).
    8. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "An Allais Measure of Production Sector Waste Due to Quotas," Public Economics 0502017, EconWPA.
    9. Bouamra-Mechemache & Réquillart, 2000. "Analysis of EU dairy policy reform," Working Papers 156175, Institut National de la Recherche Agronomique, France.
    10. Lilyan E. Fulginiti & Richard K. Perrin, 1994. "Measure of Waste Due to Quotas," Center for Agricultural and Rural Development (CARD) Publications 94-gatt14, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    11. Marion Desquilbet & Hervé Guyomard, 1998. "Agricultural Export Subsidies and Intermediate Goods Trade: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 422-425.
    12. Z Bouamra Mechemache & V Réquillart, 2000. "Analysis of EU dairy policy reform," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(4), pages 409-430, December.
    13. Sanyal, Kalyan K & Jones, Ronald W, 1982. "The Theory of Trade in Middle Products," American Economic Review, American Economic Association, vol. 72(1), pages 16-31, March.
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