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Restraining auto imports: Does anyone win?

Author

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  • Jose A. Gomez-Ibanez
  • Robert A. Leone
  • Stephen A. O'Connell

Abstract

The conventional wisdom suggests that import restraints help the protected domestic industry at the expense of consumers. In the longer term, however, trade restraint may encourage foreign firms to adopt new and more threatening business strategies, such as upgrading the quality of their products or moving plants to the United States. If these long-term dynamic effects of restraint are considered, trade restraints may prove harmful to the domestic industry as well as consumers.

Suggested Citation

  • Jose A. Gomez-Ibanez & Robert A. Leone & Stephen A. O'Connell, 1982. "Restraining auto imports: Does anyone win?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 2(2), pages 196-219.
    • Handle: RePEc:wly:jpamgt:v:2:y:1982:i:2:p:196-219
    DOI: 10.2307/3323283
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