Export Subsidies and Price Competition PDF Download

Author: J. Peter Neary
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 38

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Author: Centre for Economic Policy Research (Gran Bretanya)
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Category :
Languages : en
Pages : 56

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Author: Leonardo Medrano
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Category : Commercial policy
Languages : en
Pages : 56

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Author: Ann Hillberg Seitzinger
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Category : Agricultural subsidies
Languages : en
Pages : 36

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Author: James A. Brander
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Category : Commercial policy
Languages : en
Pages : 44

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Book Description
Countries often perceive themselves as being in competition with each other for profitable international markets. In such a world export subsidies can appear as attractive policy tools, from a national point of view, because they improve the relative position of a domestic firm in noncooperative rivalries with foreign firms, enabling it to expand its market share and earn greater profits. In effect, subsidies change the initial conditions of the game that firms play. The terms of trade move against the subsidizing country, but its welfare can increase because, under imperfect competition, price exceeds the marginal cost of exports. International noncooperative equilibriumis characterized by such subsidies on the part of exporting nations, even though they are jointly suboptimal.

Author: Filip Abraham
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Category : Business & Economics
Languages : en
Pages : 152

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Recoge: 1. Legal constraints en export financing for EC member countries - 2. Export financing subsidies in Belgium, France, Germany and the United Kingdom - 3. The competitive effects of export financing subsidies.

Author: Kiyoun Sohn
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Category : Foreign trade regulation
Languages : en
Pages : 322

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Author: Anthony J. Venables
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Category : Applied mathematics
Languages : en
Pages : 48

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Author: Mihir A. Desai
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Category : Export subsidies
Languages : en
Pages : 52

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"This paper analyzes the economic impact of export subsidies by investigating stock price reactions to a critical event in 1997. On November 18, 1997, the European Union announced its intention to file a complaint before the World Trade Organization (WTO), arguing that the United States provided American exporters illegal subsidies by permitting them to use Foreign Sales Corporations to exempt a fraction of export profits from taxation. Share prices of American exporters fell sharply on this news, and its implication that the WTO might force the United States to eliminate the subsidy. The share price declines were largest for exporters whose tax situations made the threatened export subsidy particularly valuable. Share prices of exporters with high profit margins also declined markedly on November 18, 1997, suggesting that the export subsidies were most valuable to firms earning market rents. This last evidence is consistent with strategic trade models in which export subsidies improve the competitive positions of firms in imperfectly competitive markets"--NBER website

Author: Jota Ishikawa
Publisher:
ISBN:
Category : Commercial policy
Languages : en
Pages : 44

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Book Description
This paper argues that export subsidies aimed at shifting rents from foreign to domestic producers of a final good may also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By contrast, assuming Cournot competition for both the final and intermediate goods, this second layer of rent-shifting between final and intermediate good firms can strengthen the argument for an export subsidy if intermediate good firms are domestic. The domestic welfare implications of alternative rent-shifting policies (a production subsidy and an import tariff) at the intermediate good stage are also considered.