International Quota Transfer and Intermediate Goods

Ana Maria Aldanondo and Javier Puertolas

No 24851, 2002 International Congress, August 28-31, 2002, Zaragoza, Spain from European Association of Agricultural Economists

Abstract: In this paper we use a general equilibrium model to examine the effects of international quota transfer when a quota restricts world commodity production whilst the trade in an intermediate good is not regulated. The analysis shows that, when the quota regime is not internationally transferable, intermediate input trade substitutes for final good trade. In these circumstances, the distortions are lower than expected. International quota transfer increases world welfare proportionally to quota rent gap. Welfare distribution is also conditioned by commodity terms of trade and, particularly, by the outcome of the intermediate good price.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 17
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae02:24851

DOI: 10.22004/ag.econ.24851

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