Abstract
This paper investigates the impact of the end of the export quota system (EQS) on China-to-export price transmission in the rare earth elements market, taking into account threshold effects and price transmission asymmetries. The results indicate that export prices became more responsive to changes of Chinese prices after the Chinese Ministry of Commerce (MOFCOM) abandoned the exort quota policy. While price shocks wash out much quicker in the Post-EQS period, we do not find evidence for rockets and feathers-type of behaviour.
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