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Export Performance and Export-Import Linkage Requirements

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  • Mark G. Herander
  • Christopher R. Thomas

Abstract

This paper examines the resource allocation effects of two policies widely employed by developing countries to improve their trade balances. Compared to free-trade, both export performance and export-import linkage policies may actually worsen the balance of trade unless they are coupled with an import barrier on final goods. Even with such barriers, an export-import linkage policy still may not cause the trade balance to improve. The effects of both policies on a number of domestic variables are discussed. Profit and output of domestic exporters can increase under trade performance policies.

Suggested Citation

  • Mark G. Herander & Christopher R. Thomas, 1986. "Export Performance and Export-Import Linkage Requirements," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(3), pages 591-607.
    • Handle: RePEc:oup:qjecon:v:101:y:1986:i:3:p:591-607.
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    File URL: http://hdl.handle.net/10.2307/1885698
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    Cited by:

    1. Foroutan,Faezeh S., 1990. "The distortionary effects of tariff exemptions in Argentina," Policy Research Working Paper Series 388, The World Bank.
    2. Ram Mudambi, 1993. "Government Policy toward MNEs in the Presence of Foreign Exchange Scarcity," Eastern Economic Journal, Eastern Economic Association, vol. 19(1), pages 99-108, Winter.
    3. C Sharma, 2016. "Does importing more inputs raise productivity and exports? Some evidence from Indian manufacturing," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 1-23, March.

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