IDEAS home Printed from https://ideas.repec.org/a/bla/jecrev/v55y2004i2p153-161.html
   My bibliography  Save this article

Countervailing Duties, Foreign Export Subsidies and Import Tariffs

Author

Listed:
  • Yu‐Ter Wang

Abstract

Given that countervailing duties and import tariffs are set in different ways and for different purposes, I re‐examine the relationship between countervailing duties, foreign export subsidies and import tariffs under imperfect competition. I find that (i) the optimal countervailing duty depends on the existing import tariff level; (ii) the optimal import tariff is so high that the optimal countervailing duty is zero and hence foreign export subsidization occurs; and (iii) it is more likely for countervailing duties to be imposed on a foreign firm whose government takes no action when other foreign countries reduce or eliminate their subsidies on exports.

Suggested Citation

  • Yu‐Ter Wang, 2004. "Countervailing Duties, Foreign Export Subsidies and Import Tariffs," The Japanese Economic Review, Japanese Economic Association, vol. 55(2), pages 153-161, June.
    • Handle: RePEc:bla:jecrev:v:55:y:2004:i:2:p:153-161
    DOI: 10.1111/j.1468-5876.2004.t01-2-00299.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-5876.2004.t01-2-00299.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-5876.2004.t01-2-00299.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Collie, 1994. "Endogenous timing in trade policy games: Should governments use countervailing duties?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 191-209, March.
    2. Gallaway, Michael P. & Blonigen, Bruce A. & Flynn, Joseph E., 2000. "Erratum to "Welfare costs of the U.S. antidumping and countervailing duty laws": [Journal of International Economics 49 (1999) 211-244]," Journal of International Economics, Elsevier, vol. 52(1), pages 205-205, October.
    3. Dixit, Avinash, 1988. "Anti-dumping and countervailing duties under oligopoly," European Economic Review, Elsevier, vol. 32(1), pages 55-68, January.
    4. Bhattacharjea, Aditya, 1995. "Strategic tariffs and endogenous market structures: Trade and industrial policies under imperfect competition," Journal of Development Economics, Elsevier, vol. 47(2), pages 287-312, August.
    5. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
    6. Qiu, Larry D., 1995. "Why can't countervailing duties deter export subsidization?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 249-272, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu‐ter Wang, 2008. "Product Differentiation: An Alternative To Cvds," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 513-517, September.
    2. Lim, Seonyoung & Choi, Kangsik, 2014. "Strategic Subsidy Policies with Endogenous Choice of Competition Mode," MPRA Paper 59462, University Library of Munich, Germany.
    3. Choi, Kangsik & Lee, Ki-Dong & Lim, Seonyoung, 2016. "Strategic Trade Policies In International Rivalry When Competition Mode Is Endogenous," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 223-241, December.
    4. Manitra Rakotoarisoa, 2011. "Strategic Trade Policies Under Monopsony and Uncertainty: The Exporter’s Non-Linear Responses Based on the Organization of Its Industry," Journal of Industry, Competition and Trade, Springer, vol. 11(2), pages 187-201, June.
    5. Yu-Ter Wang, 2009. "On the simultaneous elimination of export subsidies under oligopoly," Applied Economics, Taylor & Francis Journals, vol. 41(5), pages 629-631.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu-Ter Wang & Bih-Jane Liu & Pan-Long Tsai, 2004. "Trade Policy and Economic Integration in a Cournot Duopoly Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(3), pages 239-251.
    2. Philippe Kohler & Michael O. Moore, 2003. "Domestic Welfare Effects of Foreign Strategic Trade Policies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 573-586.
    3. Kit Wong & Kong Chow, 1997. "Endogenous Sequencing in Strategic Trade Policy Games Under Uncertainty," Open Economies Review, Springer, vol. 8(4), pages 353-369, October.
    4. Matloob Piracha, 2004. "Export Subsidies and Countervailing Duties Under Asymmetric Information," Studies in Economics 0410, School of Economics, University of Kent.
    5. Aditya Bhattacharjea, 2002. "Infant Industry Protection Revisited," International Economic Journal, Taylor & Francis Journals, vol. 16(3), pages 115-133.
    6. Stiegert, Kyle W. & Wang, Shinn-Shyr, 2003. "Imperfect Competition And Strategic Trade Theory: What Have We Learned," Working Papers 14589, International Agricultural Trade Research Consortium.
    7. Yasushi Kawabata, 2020. "Strategic export policy towards raw materials in vertically related markets," International Journal of Economic Policy Studies, Springer, vol. 14(1), pages 239-253, February.
    8. Yu‐ter Wang, 2008. "Product Differentiation: An Alternative To Cvds," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 513-517, September.
    9. Sang-Kee Kim & Young-Han Kim, 2020. "Welfare implications of upstream subsidy in the presence of countervailing duties under limited verifiability," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(3), pages 643-663, June.
    10. Staiger, Robert W., 1995. "International rules and institutions for trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 29, pages 1495-1551, Elsevier.
    11. Tsuyoshi Toshimitsu, 1997. "ON THE ENDOGENOUS TIMlNG IN TRADE POLICY GAME FA GENERAL CASE," Discussion Paper Series 20, School of Economics, Kwansei Gakuin University, revised Oct 1997.
    12. Meredith A. Crowley, 2006. "The agreement on subsidies and countervailing measures: tying one's hands through the WTO," Working Paper Series WP-06-22, Federal Reserve Bank of Chicago.
    13. Manitra Rakotoarisoa, 2011. "Strategic Trade Policies Under Monopsony and Uncertainty: The Exporter’s Non-Linear Responses Based on the Organization of Its Industry," Journal of Industry, Competition and Trade, Springer, vol. 11(2), pages 187-201, June.
    14. Yu-Ter Wang, 2009. "On the simultaneous elimination of export subsidies under oligopoly," Applied Economics, Taylor & Francis Journals, vol. 41(5), pages 629-631.
    15. Delia Baghdasaryan & Krešimir Žigić, 2010. "Tariffs, market conduct and government commitment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(1), pages 91-122, January.
    16. David Collie, 1994. "Endogenous timing in trade policy games: Should governments use countervailing duties?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 191-209, March.
    17. Qiao Xiaoyong, 2013. "The Empirical Research on Macro Decision-Making Factors of Implementing Countervailing Policy," Journal of Systems Science and Information, De Gruyter, vol. 1(1), pages 60-73, February.
    18. Delia Ionaºcu & Kresimir Zigic, 2005. "Strategic Tariff Protection, Market Conduct, and Government Commitment Levels in Developing Economies," CERGE-EI Working Papers wp249, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    19. David Collie, 1997. "Delegation and Strategic Trade Policy," International Economic Journal, Taylor & Francis Journals, vol. 11(3), pages 35-46.
    20. Moraga-Gonzalez, Jose Luis & Viaene, Jean-Marie, 2005. "Trade policy and quality leadership in transition economies," European Economic Review, Elsevier, vol. 49(2), pages 359-385, February.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jecrev:v:55:y:2004:i:2:p:153-161. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jeaaaea.html .

    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.