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International Quota Transfer and Intermediate Goods

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  • Aldanondo, Ana Maria
  • Puertolas, Javier

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.

Suggested Citation

  • Aldanondo, Ana Maria & Puertolas, Javier, 2002. "International Quota Transfer and Intermediate Goods," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24851, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae02:24851
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    File URL: http://purl.umn.edu/24851
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    References listed on IDEAS

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