Abstract
This paper shows another difference among tariffs, import quotas and voluntary export restraints in their economic effects. A country may or may not experience immiserizing growth in the presence of a trade restriction. The outcome depends on whether the country restricts its trade with tariffs, import quotas or voluntary export restraints. Immiserizing growth never arises in the presence of import quotas. However, immiserizing growth can arise in the presence of tariffs and voluntary export restraints. The offer curve approach is used in this study.
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