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Effective Rates of Assistance for Norwegian Industries

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Abstract

We measure the effective assistance to 17 Norwegian private industries in 1989 and 1991 caused by government budgetary subsidies, indirect commodity taxes, import protection through nominal tariffs and non-tariff barriers, and electricity market distortions. The assistance effects are measured by the change in the net-of-tax value added price due to a removal of the policy measures considered. Most industries were effectively assisted, but the effective assistance differs widely between industries indicating the overall distortive effect on the industry structure. Agriculture, Food Processing and Manufacture of Beverages and Tobacco stand out as the most assisted industries. Budgetary subsidies and non-tariff barriers had the strongest effective assistance effect.

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  • Erling Holmøy & Torbjørn Hægeland, 1995. "Effective Rates of Assistance for Norwegian Industries," Discussion Papers 147, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:147
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    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp_147.pdf
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    Cited by:

    1. Bye Brita & Faehn Taran & Grünfeld Leo A., 2011. "Growth and Innovation Policy in a Small, Open Economy: Should You Stimulate Domestic R&D or Exports?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-41, July.
    2. Sverre Grepperud, 1997. "Soil Depletion Choices under Production and Price Uncertainty," Discussion Papers 186, Statistics Norway, Research Department.
    3. Faehn, Taran & Grunfeld, Leo A., 1999. "Recent Leaps Towards Free Trade: The Impact on Norwegian Industry and Trade Patterns," Journal of Policy Modeling, Elsevier, vol. 21(6), pages 715-745, November.

    More about this item

    Keywords

    Effective Rates of Assistance; Industrial Policy;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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