Quotas, Spillovers, and the Transfer Paradox in an Economy with Tourism

被引:10
作者
Chao, Chi-Chur [1 ,2 ]
Hazari, Bharat R. [3 ]
Yu, Eden S. H. [3 ]
机构
[1] Chinese Univ Hong Kong, Dept Econ, Shatin, Hong Kong, Peoples R China
[2] Oregon State Univ, Dept Econ, Corvallis, OR 97331 USA
[3] City Univ Hong Kong, Dept Econ & Finance, Kowloon, Hong Kong, Peoples R China
关键词
IMPORT QUOTAS; WELFARE; TRADE; GROWTH; POLICY; GAINS; GOODS; AID;
D O I
10.1111/j.1467-9396.2010.00860.x
中图分类号
F [经济];
学科分类号
020101 [政治经济学];
摘要
This paper examines the welfare implications of quotas for an economy that is small in terms of traditionally traded goods and has monopoly power over the trade of goods consumed by tourists. Inbound tourism converts local nontraded goods into tradable goods, creating a tourism terms-of-trade effect for the tourist-receiving economy. Through this effect, quotas result in a spillover to the nontraded sector. Hence, in the presence of tourism, the traditional free-trade prescription for the small open economy is no longer valid. This lends support to the setting of import quotas. Using the optimal quota as a benchmark, we further examine the welfare effect of tied aid. If tied aid brings about an excessive supply of importable goods, then the transfer paradox of the immiserization of the tourist-receiving economy may occur.
引用
收藏
页码:243 / 249
页数:7
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