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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.Abstract. In an economy with an external increasing returns technology and a convex production set, international capital mobility reduces the shadow price of foreign exchange if quotas or VERs are in force, but leaves this shadow price unaltered if tariffs are in place. Protection et prix de reference des devises etrangeres quand il y rendements croissants et mobilite internationale du capital. Dans une economie dot6e d'une technologie a rendements croissants et d'un ensemble de production convexe, la mobilit6 internationale du capital r6duit le prix de ref6rence des devises 6trangeres quand on a des contingentements ou des restrictions volontaires a 1'exportation, mais laisse le prix de r6f6rence inchange quand on a des droits de douane.We are indebted to two anonymous referees for many helpful comments.

Increasing returns of the international kind as opposed to the usual national kind do not justify subsidies by a small country.