Supply Management and Import Concessions

James Vercammen and Andrew Schmitz

Canadian Journal of Economics, 1992, vol. 25, issue 4, 957-71

Abstract: Countries such as Canada, which manage domestic supply by regulating both production and imports, have come under pressure in recent years to liberalize their trade policy. This paper examines the effect of import concessions on the distribution of rents in supply-managed industries. Although import concessions decrease producer welfare, it is shown that rather sizable concessions may occur before producers are worse off under supply management than free trade. This is especially true in industries characterized by a low free-trade import share and inelastic demand. With regard to net social welfare, policies that are designed to transfer market rents to producers through supply management incur larger deadweight losses when they also incorporate import concessions.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819921 ... SMAIC%3E2.0.CO%3B2-6 (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:25:y:1992:i:4:p:957-71

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 ().