OECD Trade Policy Papers

ISSN :
1816-6873 (online)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Economics of Export Restrictions as Applied to Industrial Raw Materials You or your institution have access to this content

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Author(s):
K.C. Fung1, Jane Korinek
Author Affiliations
  • 1: University of California, United States

Publication Date
14 May 2013
Bibliographic information
No.:
155
Pages
43
DOI
10.1787/5k46j0r5xvhd-en

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Governments intervene in non-renewable natural resources sectors more than in many others, including through the use of export taxes and quotas. Industrial raw materials sectors are characterized by a number of specificities: production is often geographically concentrated, firms are often large with substantial market power, production processes are highly capital intensive, products are relatively homogeneous and potentially substantial differences in costs of production are prevalent. This paper aims to increase understanding of the economic effects of export restrictions, in particular as they apply to the mining sector. It ascertains the prevalence of export restrictions on metals and minerals, proposes a Cournot-Nash model of export restrictions, suggests some of the economic effects due to the presence of export restrictions, and draws some implications for trade policy among producing and consuming countries of non-renewable natural resources.
Keywords:
export restrictions, export taxes, export ban, Cournot-Nash model, extractive industries, mining sector, export prohibition, export quotas, industrial raw materials
JEL Classification:
  • F12: International Economics / Trade / Models of Trade with Imperfect Competition and Scale Economies
  • F13: International Economics / Trade / Trade Policy; International Trade Organizations
  • L72: Industrial Organization / Industry Studies: Primary Products and Construction / Mining, Extraction, and Refining: Other Nonrenewable Resources
  • Q37: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Issues in International Trade