This paper presents a general framework for comparing the effects of tariffs, quotas and VERS (voluntary export restraints) both with and without international capital mobility. Expressions for the shadow price of foreign exchange and the shadow price of capital under each type of trade restriction are derived, and it is shown that, although international capital mobility raises the welfare cost of tariff protection, it lowers the welfare cost of quantitative restrictions. In most cases the e...Expand abstract
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- Peer review status:
- Peer reviewed
- Copyright holder:
- Canadian Economics Association
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- N.B. Professor Neary was based at University College Dublin and Queen's University, Kingston, when this article was first published. The full-text of this article is not available in ORA at this time. Citation: Neary, J. P. (1988). 'Tariffs, quotas and voluntary export restraints with and without internationally mobile capital', The Canadian Journal of Economics, 21(4), 714-735.