The author's model demonstrates that when imports are predominantly intermediate inputs - as they are in most developing countries - import restrictions can not always be relied upon to improve the trade balance. Such restrictions act as a supply shock to the economy. Unless nontraded goods are intensive users of imported intermediaries, the general equilibrium consequence of import restrictions is a large enough reduction in export supplies to swamp...
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1989/03/31
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Documento de trabalho sobre pesquisa de políticas
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WPS174
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1
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1
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2010/07/01
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Trade restrictions with imported intermediate inputs : when does the trade balance improve?
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trade balance
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