Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 41 (1989)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|