One third of Chinese exporters sell more than ninety percent of their production abroad. We argue that this distinctive pattern is attributable to the widespread use of subsidies that require firms to export the vast majority of their output. We study this type of subsidy in the context of a...

This paper examines the optimality of export subsidies in oligopolistic markets, when home and foreign fires have different costs and there is an opportunity cost to public funds. Subsidies are found to be optimal only for surprisingly lou values of the shadow price of government funds and, if...

We study the effect of subsidies subject to export share requirements (ESR) | that is, conditioned on a firm exporting at least a given fraction of its output - on exports, the intensity of competition and welfare, through the lens of a two-country model of trade with heterogeneous firms. Our...