domestic market. A counterfactual analysis suggests that eliminating these subsidies would result in a welfare gain for China …

from the 2002 wave of the Business Environment and Enterprise Performance Survey collected by the World Bank for China. The … exporters, firms exporting all their output, observed in China, from 25.7% in 2002 to 11.1% in 2013. Our results indicate that a … in China increases by 1.76% while real income in the rest of the world falls by 0.59%. …