학술저널
Quality Shifts and Voluntary Export Restraints from the Perspective of the Exporter`s Home Market
Quality Shifts and Voluntary Export Restraints from the Perspective of the Exporter`s Home Market
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제6권 제2호
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1991.0934 - 46 (13 pages)
- 0
This paper discusses the economic impacts of a change in the level of voluntary export restraints (VERS) from the perspective of the exporting country. It is shown that the market condition in the exporting country cannot be ignored unless marginal costs of production are constant. It is also shown that whether quality shifts will occur mainly depend on cost structures and demand elasticities. Without special restrictions on cost structures and demand elasticities, the degree of substitutability between two goods or market structures alone cannot determine the economic impact or quality shifts unambiguously.
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