Restraining auto imports: Does anyone win?

Jose A. Gomez-Ibanez, Robert A. Leone and Stephen O'Connell ()

Journal of Policy Analysis and Management, 1982, vol. 2, issue 2, 196-219

Abstract: The conventional wisdom suggests that import restraints help the protected domestic industry at the expense of consumers. In the longer term, however, trade restraint may encourage foreign firms to adopt new and more threatening business strategies, such as upgrading the quality of their products or moving plants to the United States. If these long-term dynamic effects of restraint are considered, trade restraints may prove harmful to the domestic industry as well as consumers.

Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jpamgt:v:2:y:1982:i:2:p:196-219

DOI: 10.2307/3323283

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