Pflüger, Michael P.; Suedekum, Jens - Institute for the Study of Labor (IZA) - 2009
countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as … the tightening of domestic market selection also affects exporting decisions for domestic and foreign firms. Our analysis …