Download or read book Voluntary Export Restraints and Resource Allocation in Exporting Countries written by Jaime De Melo and published by World Bank Publications. This book was released on 1990 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: By reducing the marginal revenue of the factors of production , a voluntary export restraint (VER) causes an exporting country's industry to contract. Efficiency losses depend on whether sales can be diverted from restricted to unrestricted markets. A VER is likely to produce a welfare loss if demand is relatively elastic and supply is not.