IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-34820-2_8.html
   My bibliography  Save this book chapter

Capacity Constraint, Export Subsidies and World Recession

In: Positive and Normative Analysis in International Economics

Author

Listed:
  • Hong Hwang
  • Chao-Cheng Mai
  • Ya-Po Yang

Abstract

During the global recession that began in September 2008, the world economy started to operate significantly below full capacity, and many industries around the world faced closure or else were forced to slash capacity to cope with the reduction in demand. As reported by United Press International (11 May 2009), the capacity utilization rate for industry overall in the United States fell to 69.3 per cent, a historical low since these statistics began to be compiled back in 1967. Collapsing world trade and the corresponding impact on industrial production has led the recession to spill over into export-led economies such as Bangladesh and Pakistan.1 Such exporting countries have faced low capacity utilization caused by the global recession, and in response they have raised their export subsidy rates to promote their exports and help soften the low capacity-utilization problem. This simply indicates that export subsidy rates should increase with a fall in capacity utilization (or a demand recession).

Suggested Citation

  • Hong Hwang & Chao-Cheng Mai & Ya-Po Yang, 2012. "Capacity Constraint, Export Subsidies and World Recession," Palgrave Macmillan Books, in: Murray C. Kemp & Hironobu Nakagawa & Tatsuya Uchida (ed.), Positive and Normative Analysis in International Economics, chapter 7, pages 117-137, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-34820-2_8
    DOI: 10.1057/9780230348202_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-34820-2_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.