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A Ricardian rationale for the WTO rules on R&D subsidies

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  • Koh, Yumi
  • Lee, Gea M.

Abstract

The WTO subsidy rules use two key criteria, specificity and adverse effects, to regulate R&D subsidies. Using the model of Dornbusch et al. (1977), we offer a Ricardian rationale for the regulatory criteria.

Suggested Citation

  • Koh, Yumi & Lee, Gea M., 2020. "A Ricardian rationale for the WTO rules on R&D subsidies," Economics Letters, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:ecolet:v:196:y:2020:i:c:s0165176520303062
    DOI: 10.1016/j.econlet.2020.109500
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    References listed on IDEAS

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    1. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    2. Itoh, Motoshige & Kiyono, Kazuharu, 1987. "Welfare-Enhancing Export Subsidies," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 115-137, February.
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    Cited by:

    1. Koh, Yumi & Lee, Gea M., 2023. "R&D subsidies in permissive and restrictive environment: Evidence from Korea," Research Policy, Elsevier, vol. 52(1).
    2. Traiberman, Sharon & Rotemberg, Martin, 2023. "Precautionary protectionism," Journal of International Economics, Elsevier, vol. 145(C).

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    More about this item

    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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