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Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports

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  • Tyers, Rod
  • Falvey, Rod

Abstract

Export subsidies have been prominent in the recent trade dispute between the United States and the European Community. Implicit in this dispute is the notion that each party expects to gain from unilateral liberalization by the other. In this paper, it is first established analytically that increases in export prices can have ambiguous net welfare effects when at least some exports are subsidized. It is shown that the extent to which border price changes are transmitted to domestic markets is a key determinant of the direction and magnitude of net welfare effects. Copyright 1989 by Royal Economic Society.

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  • Tyers, Rod & Falvey, Rod, 1989. "Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 434-451, April.
    • Handle: RePEc:oup:oxecpp:v:41:y:1989:i:2:p:434-51
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    Cited by:

    1. Anderson, James E., 1998. "The Uruguay Round and welfare in some distorted agricultural economies," Journal of Development Economics, Elsevier, vol. 56(2), pages 393-410, August.
    2. Antônio Salazar P. Brandão & Will J. Martin, 1993. "Implications of agricultural trade liberalization for the developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 8(4), pages 313-343, June.
    3. K. Anderson & R. Tyers, 1993. "More On Welfare Gains To Developing Countries From Liberalizing World Food Trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 189-204, May.
    4. SAITO Katsuhiro & SAITO Konomi, 2010. "Piecemeal Trade Liberalization on Agriculture - Theoretical and AGE based Simulation Analysis," EcoMod2003 330700130, EcoMod.
    5. Ingco, Merlinda D., 1997. "Has agricultural trade liberalization improved welfare in the least-developed countries? Yes," Policy Research Working Paper Series 1748, The World Bank.

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