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The Economic Impact of Export Restrictions on Raw Materials

image of The Economic Impact of Export Restrictions on Raw Materials

Export restrictions on raw materials are applied to achieve a number of policy objectives. However, they can have a significant and negative impact on the efficient allocation of resources, international trade, and the competitiveness and development of industries in both exporting and importing countries.  

By diverting exports to domestic markets, export restrictions raise prices for foreign consumers and importers. At the same time, by reducing domestic prices in the applying countries and increasing global uncertainty concerning future prices, export restrictions negatively affect investment, thus potentially reducing the overall supply of raw materials in the long term. In view of existing alternative policy tools that have a different impact on trade, the effectiveness of export restrictions to achieve stated policy objectives should be carefully reviewed.  

This publication presents a selection of papers discussed at the OECD Workshop on Raw Materials, held in Paris in October 2009. This workshop was organised in response to the growing concern on the use of export restrictions on raw materials, particularly by emerging economies.

English

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The Economic Impact of Export Restraints on Russian Natural Gas and Raw Timber

Export restraints by the Russian Federation (Russia) on natural gas and timber have created concerns in European importing countries. The analysis in this chapter focuses on development perspective of export restrictions in that the restrictions are applied to improve the exporter’s terms of trade. The analysis focuses on Russian policies concerning natural gas and timber, which share the dual effect of decreasing domestic prices while increasing export prices.

English

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