Export Subsidy Competition And The Wto Agreement
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.
Volume (Year): 28 (2003)
Issue (Month): 1 (June)
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- Janeba, Eckhard, 1998.
"Tax competition in imperfectly competitive markets,"
Journal of International Economics,
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- 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. Full references (including those not matched with items on IDEAS)
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