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Should Export-Share Requirements Be Implemented under Quota Protection?


  • Chi-Chur Chao
  • Eden S. H. Yu


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.

Suggested Citation

  • Chi-Chur Chao & Eden S. H. Yu, 1994. "Should Export-Share Requirements Be Implemented under Quota Protection?," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 568-579, August.
  • Handle: RePEc:cje:issued:v:27:y:1994:i:3:p:568-79

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    References listed on IDEAS

    1. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    2. Jonathan Eaton & Mark Gersovitz, 1981. "Debt with Potential Repudiation: Theoretical and Empirical Analysis," Review of Economic Studies, Oxford University Press, vol. 48(2), pages 289-309.
    3. Frenkel, Jacob A & Razin, Assaf, 1986. "Fiscal Policies in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 564-594, June.
    4. R. Dornbusch, 1984. "External Debt, Budget Deficits and Disequilibrium Exchange Rates," Working papers 347, Massachusetts Institute of Technology (MIT), Department of Economics.
    5. Ronald W. Jones & Douglas D. Purvis, 1981. "International Differences in Response to Common External Shocks: The Role of Purchasing Power Parity," Working Papers 419, Queen's University, Department of Economics.
    6. Alvin E Roth, 2008. "Axiomatic Models of Bargaining," Levine's Working Paper Archive 122247000000002376, David K. Levine.
    7. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
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    Cited by:

    1. 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.
    2. Chi-Chur Chao & Eden S. H. Yu, 2014. "Export-Share Requirements, Trade Balances, and Welfare: A Two-Period Analysis," World Scientific Book Chapters,in: TRADE-RELATED INVESTMENT MEASURES Theory and Applications, chapter 5, pages 77-89 World Scientific Publishing Co. Pte. Ltd..
    3. Chi-Chur Chao & Eden S. H. Yu, 2014. "The Impact of Export-Share Requirements Under Production Uncertainty," World Scientific Book Chapters,in: TRADE-RELATED INVESTMENT MEASURES Theory and Applications, chapter 7, pages 107-123 World Scientific Publishing Co. Pte. Ltd..
    4. 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.

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