Voluntary Export Restraints and Resource Allocation in Exporting Countries
This article analyzes the resource implications of voluntary export restraints (VERs) for exporting countries. A simple analytical method is used to demonstrate that, by reducing the marginal revenue of its factors of production, a VER causes an industry in the exporting country to contract, and that the efficiency losses from a VER depend on the ease with which sales can be diverted from the restricted toward the unrestricted markets. The method is applied to test the effects of the U.S. Orderly Marketing Agreement (OMA) for producers of leather footwear in the Republic of Korea during the period 1977-81. We estimate that the marginal revenue product of factors employed in leather footwear declined by as much as 9 percent because of the OMA, an estimate that is corroborated by inspection of time series on output, employment, and wages of the Korean footwear sector. This implies that there was pressure on the Korean footwear industry to contract as a result of the OMA. Copyright 1990 by Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 4 (1990)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: http://wber.oxfordjournals.org/Email:
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aigner, Dennis J. & Hsiao, Cheng & Kapteyn, Arie & Wansbeek, Tom, 1984. "Latent variable models in econometrics," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 23, pages 1321-1393 Elsevier.
- Neary, J. P. & Roberts, K. W. S., 1980.
"The theory of household behaviour under rationing,"
European Economic Review,
Elsevier, vol. 13(1), pages 25-42, January.
- 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.
- Bark, Taeho & de Melo, Jaime, 1988.
"Export Quota Allocations, Export Earnings, and Market Diversification,"
World Bank Economic Review,
World Bank Group, vol. 2(3), pages 341-48, September.
- Bark, Taeho & de Melo, Jaime, 1988. "Export quota allocations, export earnings and market diversifications," Policy Research Working Paper Series 89, The World Bank.
- Nogues, Julio J & Olechowski, Andrzej & Winters, L Alan, 1986. "The Extent of Nontariff Barriers to Industrial Countries' Imports," World Bank Economic Review, World Bank Group, vol. 1(1), pages 181-99, September.
- Tarr, David G, 1987. "Effects of Restraining Steel Exports from the Republic of Korea and Other Countries to the United States and the European Economic Community," World Bank Economic Review, World Bank Group, vol. 1(3), pages 397-418, May.
- Trela, I. & Whalley, J., 1988.
"Do Developing Countries Lose From The Mfa?,"
University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers
8804c, University of Western Ontario, The Centre for the Study of International Economic Relations.
- Feenstra, Robert C., 1985. "Automobile prices and protection: The U.S.-Japan trade restraint," Journal of Policy Modeling, Elsevier, vol. 7(1), pages 49-68.
- Hickman, Bert G. & Lau, Lawrence J., 1973. "Elasticities of substitution and export demands in a world trade model," European Economic Review, Elsevier, vol. 4(4), pages 347-380, December.
When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:4:y:1990:i:2:p:209-33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.