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domestic market. A counterfactual analysis suggests that eliminating these subsidies would result in a welfare gain for China …
Persistent link: https://www.econbiz.de/10010291545
This paper develops a Bertrand Price Competition model with differentiated goods in which export subsidies are compared to exchange rate depreciation as different government policies for promoting exports. National governments may wish to help domestic firms to expand market shares in profitable...
Persistent link: https://www.econbiz.de/10010291912
We evaluate the impact of firm-specific export subsidies on exports in Colombia. Using a two-stage Heckman selection procedure, we obtain firm-specific predicted subsidy amounts that can be explained by the characteristics that determine the firms' eligibility for the government support and its...
Persistent link: https://www.econbiz.de/10010263539
We explore the welfare costs of inflation originating from lack of liquidity satiation for Weimar Republic's hyperinflation and three high-inflation countries. Towards the peak of Weimar's hyperinflation the costs are estimated to have been equal to nearly 20 per cent of income. For Israel,...
Persistent link: https://www.econbiz.de/10014494959
We study the robustness of the Lerner symmetry result in an open economy New Keynesian model with price rigidities. While the Lerner symmetry result, i.e. the absence of allocative and trade-flow effects of an equally-sized change in import tariff and export subsidy, holds up approximately for a...
Persistent link: https://www.econbiz.de/10012182825
Export growth in India has been much faster than GDP growth over the past few decades. Several factors appear to have contributed to this phenomenon including foreign direct investment (FDI). However, despite increasing inflows of FDI especially in recent years there has not been any attempt to...
Persistent link: https://www.econbiz.de/10010369139
Persistent link: https://www.econbiz.de/10011695713
Owing to the WTO exemption that allows governments to subsidise arms exports, the arms trade is one of the few remaining areas of trade where we observe lump-sum and per unit transfers to exports. This paper examines the effect of arms controls, in the form of licensing delays, on the incentives...
Persistent link: https://www.econbiz.de/10010290626
This paper provides a welfare comparison of a tariff with a combination of a production subsidy to, and a commodity tax on, an import-competing commodity in a two-country economy. We treat some plausible situations of industry protection, including where the initial tariff is above the optimal...
Persistent link: https://www.econbiz.de/10010332447
equilibrium analysis. The four parts of this approximation are: first, the estimation of the world price effect of removal of OECD … (Organisation for Economic Co-operation and Development) distortions; second, estimation of the effects of changes in world prices … on domestic prices through a price transmission model; third, estimation of the impact on domestic production through a …
Persistent link: https://www.econbiz.de/10011807602