Immiserizing Growth for a Quota-Distorted Small Economy under Variable Returns to Scale

Chi-Chur Chao and Eden Yu

Canadian Journal of Economics, 1991, vol. 24, issue 3, 686-92

Abstract: The authors demonstrate that growth of a small open economy distorted by import quotas, in contrast to the case of tariffs, improves welfare when the industries display identical variable (or constant) returns to scale. Furthermore, growth cannot reduce welfare if the industry that experiences technical progress exhibits a greater returns to scale than the static industry. Conversely, if the dynamic sector displays a smaller returns to scale than the static sector, growth of a quota-distorted small economy can be immiserizing. The authors' results are independent of whether Hicks-neutral technical progress occurs in the importable or the exportable sector.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819910 ... GFAQS%3E2.0.CO%3B2-0 (text/html)
only available to JSTOR subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:24:y:1991:i:3:p:686-92

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().