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Export subsidies and high productivity: cause or effect?

de Meza, David (1986) Export subsidies and high productivity: cause or effect? Canadian Journal of Economics, 19 (2). pp. 347-350. ISSN 1540-5982

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Abstract

According to the emerging strategic theory of trade policy, countries selling in imperfectly competitive world markets may benefit from export subsidies. This paper demonstrates that the theory predicts that it is the countries with the lowest production costs that offer the highest subsidies. It is argued that this result diminishes the attraction of the theory as a positive explanation of trade policy.

Item Type: Article
Official URL: http://economics.ca/cje/en/index.php
Additional Information: © 1986 Canadian Economics Association
Library of Congress subject classification: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
Sets: Research centres and groups > Managerial Economics and Strategy Group
Departments > Management
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 14 Apr 2011 14:52
URL: http://eprints.lse.ac.uk/35581/

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