Both a tariff and a production subsidy can be used to protect the import competing industry. Yeh (1971) has shown that if the country is large, a tariff will be superior to a production subsidy, assuming that the level of support required for the import competing industry is not greater than the...

Recently the focus of R&D impact on productivity moves from internal to external innovation. This paper assesses the link between R&D spillovers and productivity of 1017 Italian manufacturing firms over 1995-2000. Different proxies of R&D spillovers and several specification tests are used to...