Brou, Daniel; Ruta, Michele - Economic Research and Statistics Division (ERSD), World … - 2012
This paper examines the rationale for the rules on domestic subsidies in international trade agreements through a … model shows that, under political pressures, the government will turn to subsidies when its ability to provide protection is … credibly commit vis-à-vis the domestic lobby unless the trade agreement also regulates production subsidies, thus addressing …