IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/48774.html
   My bibliography  Save this paper

A Reexamination of the Partial Competitive Equilibrium Analysis of Export Subsidies

Author

Listed:
  • Dunz, Karl

Abstract

The conventional analysis of export subsidies implicitly assumes that foreign producers are prevented from selling their output in the nation with the export subsidy. This paper shows that there are 3 types of equilibria when there is no restriction on where firms can sell their output: the conventional one where the domestic price exceeds the world price by the amount of the subsidy, one where this difference is strictly positive but less than the amount of the subsidy, and one where these two prices are equal. A characterization of which type of equilibrium will occur for a given set of usual demand and supply curves is given. Furthermore, a simple demand and supply curve example is presented showing that it is possible that an export subsidy by a large country can increase that country's net welfare.

Suggested Citation

  • Dunz, Karl, 2006. "A Reexamination of the Partial Competitive Equilibrium Analysis of Export Subsidies," MPRA Paper 48774, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48774
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/48774/1/MPRA_paper_48774.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Feenstra, Robert C., 1986. "Trade policy with several goods and market linkages," Journal of International Economics, Elsevier, vol. 20(3-4), pages 249-267, May.
    Full references (including those not matched with items on IDEAS)

    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. Bagwell, Kyle & Staiger, Robert W., 1989. "The role of export subsidies when product quality is unknown," Journal of International Economics, Elsevier, vol. 27(1-2), pages 69-89, August.
    2. Walsh, Patrick, 1991. "A general framework for analysing endogenous trade divergences," LSE Research Online Documents on Economics 6780, London School of Economics and Political Science, LSE Library.
    3. 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.
    4. Arnaud Costinot & Guido Lorenzoni & Iván Werning, 2014. "A Theory of Capital Controls as Dynamic Terms-of-Trade Manipulation," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 77-128.
    5. Robert Mulligan & Erwin Nijsse, 2001. "Shortage and currency substitution in transition economies: Bulgaria, Hungary, Poland, and Romania," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(3), pages 275-295, August.
    6. Opp, Marcus M., 2010. "Tariff wars in the Ricardian Model with a continuum of goods," Journal of International Economics, Elsevier, vol. 80(2), pages 212-225, March.
    7. Aldanondo, Ana Maria & Puertolas, Javier, 2002. "International Quota Transfer and Intermediate Goods," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24851, European Association of Agricultural Economists.
    8. Defever,Fabrice Fernand & Reyes,Jose Daniel & Riano,Alejandro & Varela,Gonzalo J., 2017. "All these worlds are yours, except India : the effectiveness of export subsidies in Nepal," Policy Research Working Paper Series 8009, The World Bank.
    9. Marion Desquilbet & Hervé Guyomard, 1998. "Taxes and subsidies in vertically related markets," Post-Print hal-02283455, HAL.
    10. Rickard, Bradley J. & Sumner, Daniel A., 2011. "Was there policy "reform"? Evolution of EU domestic support for processed fruits and vegetables," Food Policy, Elsevier, vol. 36(3), pages 438-449, June.
    11. Marion Desquilbet & Herve Guyomard & Chantal Le Mouël & . Secteur Sesames. Sciences Economiques Et Sociales Pour L'Agriculture Et L'Agro-Alimentaire Et Méthodes d'Etude Des Systèmesparis & . Esr. Dépa, 1996. "Taking into account the processed products in the evaluation of agricultural policies : an analysis framework [Prise en compte des produits agricoles transformés dans l'évaluation des politiques ag," Post-Print hal-02840974, HAL.
    12. Ohashi, Hiroshi, 2005. "Learning by doing, export subsidies, and industry growth: Japanese steel in the 1950s and 1960s," Journal of International Economics, Elsevier, vol. 66(2), pages 297-323, July.
    13. Vittoria Idrisova, 2011. "Application of non-tariff barriers," Research Paper Series, Gaidar Institute for Economic Policy, issue 150P.
    14. David De Remer, 2013. "The Evolution of International Subsidy Rules," Working Papers ECARES ECARES 2013-45, ULB -- Universite Libre de Bruxelles.
    15. Dahl, Bruce L. & Johnson, D. Demcey & Wilson, William W. & Gustafson, Cole R., 1995. "Credit Guarantee Programs in International Grain Markets: Background and Issues," Agricultural Economics Reports 23331, North Dakota State University, Department of Agribusiness and Applied Economics.
    16. Chantal Le Mouël, 1992. "Import tariffs, domestic distortions and "market linkages"," Working Papers hal-01959660, HAL.
    17. Jaouad, Mohamed, 1994. "An agricultural policy and trade model for Morocco," ISU General Staff Papers 1994010108000011483, Iowa State University, Department of Economics.
    18. Sergey Tsukhlo, 2011. "Competition in the Russian Industry in 2003–2009," Research Paper Series, Gaidar Institute for Economic Policy, issue 151P.
    19. J. Peter Neary, 1989. "Subsidios a las exportaciones y bienestar nacional," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 4(2), pages 135-156.
    20. Yoshitomo Ogawa, 2012. "The structure of Nash equilibrium tariffs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(1), pages 139-161, September.

    More about this item

    Keywords

    export subsidy; net welfare improving;

    JEL classification:

    • F1 - International Economics - - Trade

    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:pra:mprapa:48774. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.