Trade Policy and Market Structure Interactions in Developing Countries »
Journal Issue
Volume/Issue: 1989/91
Series: IMF Working Papers
Author(s): International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 27 October 1989
DOI: http://dx.doi.org/10.5089/9781451951639.001
ISBN: 9781451951639
Keywords: equation, free trade, imported inputs, perfect competition, trade regimes
This paper shows that the presence of quotas on imported inputs that are based on installed capacity can lead to capacity underutilization in manufacturing industries of developing countries. A replacement of such...