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Strategic Export Subsidies and Reciprocal Trade Agreements : The Natural Monopoly Case
Oleh:
Bagwell, Kyle
;
Staiger, Robert W.
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
JAPAN AND THE WORLD ECONOMY vol. 9 no. 4 (1997)
,
page 491-510.
Topik:
export
;
strategic export
;
reciprocal trade agreements
;
natural monopoly case
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
JJ47.7
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
Why do governments seek restrictions on the use of export subsidies through reciprocal trade agreements such as GATT ? In this paper, we emphasize that subsidy competition between governments can serve to coordinate the entry decisions of firms, finding that consumers in the importing countries may suffer if the coordination afforded exporters by government subsidy programs does more to prevent entry than to promote it. In such circumstances, we show that the existence of export subsidy programs can lead to inefficiencies, and importing countries and the world as a whole can be better off when such programs are banned.
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