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An Analysis of Import Expansion Policies

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  • Dinopoulos, Elias
  • Kreinin, Mordechai E

Abstract

Voluntary 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.

Suggested Citation

  • Dinopoulos, Elias & Kreinin, Mordechai E, 1990. "An Analysis of Import Expansion Policies," Economic Inquiry, Western Economic Association International, vol. 28(1), pages 99-108, January.
  • Handle: RePEc:oup:ecinqu:v:28:y:1990:i:1:p:99-108
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    References listed on IDEAS

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    1. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324 Elsevier.
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    Cited by:

    1. Krishna, Kala & Roy, Suddhasatwa & Thursby, Marie, 1998. "Implementing Market Access," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 529-544, November.
      • Krishna, K & Thursby, M & Roy, S, 1996. "Implementing Market Access," Papers 96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
      • Krishna, K & Roy, S & Thursby, M, 1996. "Implementaing Market Access," Papers 96-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
      • Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1996. "Implementing Market Access," NBER Working Papers 5593, National Bureau of Economic Research, Inc.
    2. Di Vita, Giuseppe, 2001. "Are the outputs derived from secondary materials giffen goods?," Resources Policy, Elsevier, vol. 27(4), pages 255-260, December.
    3. Greaney, Theresa M., 1996. "Import now! An analysis of market-share voluntary import expansions (VIEs)," Journal of International Economics, Elsevier, vol. 40(1-2), pages 149-163, February.
    4. Greaney, Theresa M., 1999. "Manipulating market shares: The indirect effects of voluntary import expansions (VIEs)," Japan and the World Economy, Elsevier, vol. 11(1), pages 95-113, January.
    5. Pravin Krishna, "undated". "On the Choice of Instrument: Voluntary Import Expansions (VIEs) vs Voluntary Export Restraints (VERs)," Working Papers 96-6, Brown University, Department of Economics.
    6. Carsten Kowalczyk, 1990. "Monopoly and Trade Policy," NBER Working Papers 3475, National Bureau of Economic Research, Inc.

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