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Export Subsidy Competition And The Wto Agreement

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  • Yu-Ter Wang

    ()
    (Department of International Business, Kai Nan University)

Abstract

This paper explains the occurrence of export subsidy competition and a series of accusations by the exporters that follows it, and also examines the welfare implications of the WTO agreement that prohibits export subsidies for the countries concerned and the world as a whole. It is shown that the welfare of the exporter with low costs of production is higher when export subsidization is permitted than when it is prohibited. Furthermore, the world as a whole is better off when exporting countries subsidize their exports.

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Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 28 (2003)
Issue (Month): 1 (June)
Pages: 23-34

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Handle: RePEc:jed:journl:v:28:y:2003:i:1:p:23-34

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Keywords: Export Subsidy Competition; WTO;

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  1. Janeba, Eckhard, 1998. "Tax competition in imperfectly competitive markets," Journal of International Economics, Elsevier, vol. 44(1), pages 135-153, February.
  2. David Collie, 1994. "Endogenous timing in trade policy games: Should governments use countervailing duties?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 191-209, March.
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