IDEAS home Printed from https://ideas.repec.org/a/pal/imfstp/v37y1990i3p486-508.html
   My bibliography  Save this article

Trade Policy and Excess Capacity in Developing Countries

Author

Listed:
  • Ratna Sahay

    (International Monetary Fund)

Abstract

The presence of quotas on imported inputs that are based on installed capacity can lead to capacity underutilization in manufacturing industries of developing countries. A replacement of such quotas by tariffs leads to full-capacity utilization under both perfectly and imperfectly competitive markets. Furthermore, such a policy also eliminates strategic advantages for oligopolistic firms that arise in quota-based regimes.

Suggested Citation

  • Ratna Sahay, 1990. "Trade Policy and Excess Capacity in Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 37(3), pages 486-508, September.
    • Handle: RePEc:pal:imfstp:v:37:y:1990:i:3:p:486-508
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/3867262?origin=pubexport
    File Function: main text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katrak, Homi, 1997. "The private use of publicly funded industrial technologies in developing countries: Empirical tests for an industrial research institute in India," World Development, Elsevier, vol. 25(9), pages 1541-1550, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:37:y:1990:i:3:p:486-508. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.