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Should Export-Share Requirements Be Implemented under Quota Protection?

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  • Chi-Chur Chao
  • Eden S. H. Yu

Abstract

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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    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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