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학술저널

Price and Quality Effects of VERs Revisited

Price and Quality Effects of VERs Revisited: A Case Study of Korean Footwear Exports

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This paper analyzes the price and quality effects of VERs on Korean footwear exports, applying index numbers to disaggregated Korean footwear exports during the period 1974-86. Unlike previous studies of upgrading that have relied on analyses of imports to the restricted markets. this paper compares restrained exporter`s sales to different markets, thereby providing a more accurate test of theoretical predictions. We find significant price increases to the restricted markets and mild across the board downgrading during the period when the VERs were binding.

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