ABSTRACT
The magnitude of the price elasticity of the supply of exports is of crucial importance in determining the gains or losses accruing to the importing and exporting countries from tariff preferences and from quantitative constraints on trade. Polak and Chang (1950, pp. 53–54) suggest that the most important determinants of the elasticity of export supply, whether it be for a particular industry or for an economy, are (i) the nature of the goods exported, (ii) the proportion of domestic production that is exported, and (iii) the degree of capital utilization.
