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| Bohman, Mary; Carter, Colin A.; Dorfman, Jeffrey H.. |
| A three-country model of export subsidies is developed with an exporter, an importer, and a third country, representing the rest of the world, that can act on either side of the market. The welfare effect of an export subsidy targeted toward one importing country is shown to depend on whether the third country is an exporter or an importer, the market shares, and demand elasticities. The possibility of the paradoxical result that the targeted country can lose welfare as a result of receiving a subsidy is demonstrated to exist, and conditions are derived that determine when this result occurs. It is also demonstrated that when the rest of the world is a net exporter, a country offering a targeted export subsidy will suffer a welfare loss, while either its... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International Relations/Trade. |
| Ano: 1988 |
URL: http://purl.umn.edu/51251 |
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| Anania, Giovanni; Bohman, Mary; Carter, Colin A.. |
| This paper examines the domestic and international impacts of the United States' Export Enhancement Program (EEP) in the wheat market. EEP uses targeted in-kind subsidies to expand U.S. exports and was specifically designed to compete with subsidized exports from the European Community (EC). Theoretically, we argue that the EEP program cannot be a welfare improving trade policy for the U.S., even when considering strategic trade theory. We then model EEP as an in-kind, constrained targeted export subsidy and determine its price, quantity and budgetary effects. Our empirical results show that no exporting country gains from EEP and that the intended loser, the EC, is only slightly harmed. We find only a small increase in U.S. wheat exports due to the export... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International Relations/Trade. |
| Ano: 1991 |
URL: http://purl.umn.edu/51148 |
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