A General Equilibrium Analysis of the Welfare and Employment Effects of US Quotas in Textiles, Autos, and Steel

Authors:
David G. Tarr

Using state-of-the-art modeling techniques, this report examines the costs of trade restraints in three industries. Findings indicate that voluntary export restraints in these industries cost the U.S. $21 billion in 1984 while "protecting" 174,000 jobs in the three industries. Thus, the annual cost of each job protected is approximately $120,000.