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Effects of export subsidies in an endogenous growth model with transport costs and firm location

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  • Wataru Johdo

Abstract

This paper analyzes the impact on world growth of an increase in export subsidies in one country based on an open economy endogenous growth model in which there are transportation costs and the movement of firms across international borders. In contrast to the negative effect of export subsidies on world growth in the open economy endogenous growth model without transportation costs and the movement of firms, the paper shows that an increase in export subsidies in one country increases world growth under a certain condition.

Suggested Citation

  • Wataru Johdo, 2025. "Effects of export subsidies in an endogenous growth model with transport costs and firm location," Economics and Business Letters, Oviedo University Press, vol. 14(3), pages 156-165.
    • Handle: RePEc:ove:journl:aid:21438
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/21438
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