This paper shows another difference among tariffs, import quotas and voluntary export restraints in their economic effects. A country may or may not experience immiserizing growth in the presence of a trade restriction. The outcome depends on whether the country restricts its trade with tariffs, import quotas or voluntary export restraints. Immiserizing growth never arises in the presence of import quotas. However, immiserizing growth can arise in the presence of tariffs and voluntary export restraints. The offer curve approach is used in this study.
Get full access to this article
View all access options for this article.
References
1.
BhagwatiJagdish N. and SrinivasanT.N.Lectures on International TradeMIT Press (1983), Chapter 10.
2.
JohnsonHarry G., International Trade and Economic Growth, London: George Allen and Unwin (1958), Chapter 3.
3.
MarkusenJames R., International Trade, McGraw-Hill (1995), Chapter 16.
4.
MeadeJames E., A Geometry of International Trade, London: George Allen and Unwin (1952).
5.
TakacsWendy E., “The Non-equivalence of Tariffs, Import Quotas and Voluntary Export Restraints,”Journal of International Economics, Vol. 8, no. 4, (November 1978), pp. 565–573.
