Terms of Trade Shocks and Domestic Prices Under Tariffs and Quotas: a Note

K. Gatsios

Athens University of Economics and Business from Athens University of Economics and Business, Department of International and European Economic Studies

Abstract: The paper develops a two-good, small country, general equilibrium trade model with endogenous labour supply, where trade is restricted by a tariff or an import quota. Within this framework, it is shown that, contrary to Anam (1989), under an import quota domestic and world prices may vary in the same direction.

Keywords: IMPORTATIONS; PROTECTIONISM; LABOUR SUPPLY (search for similar items in EconPapers)
JEL-codes: F10 F13 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:fth:athebu:117

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