Quota Use under VERs: A theoretical framework and some evidence on MFA quota use
In this paper, we propose a framework to study quota use under Voluntary Export Restraints (VERs). Our model unifies three strands of literature in finance and international trade policy research: the equivalence between tariff and quotas/VERs, option pricing, and option exercise. We also present evidence on quota utilisation rates for clothing exports under the Multi-Fibre Arrangement (MFA) from the most important Asian suppliers to the EU.
|Date of creation:||2004|
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- Murray, Tracy & Schmidt, Wilson & Walter, Ingo, 1983. "On the equivalence of import quotas and voluntary export restraint," Journal of International Economics, Elsevier, vol. 14(1-2), pages 191-194, February.
- Cunha, Luis Campos e & Santos, Vasco, 1996. "Sleeping quotas, pre-emptive quota bidding and monopoly power," Journal of International Economics, Elsevier, vol. 40(1-2), pages 127-148, February.
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