Protectionism through exporting: subsidies with export share requirements in China

Fabrice Defever and Alejandro Riaño

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: 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 calibrated model suggests that this type of subsidy boosts exports more and provides greater protection for domestic firms than a standard unconditional export subsidy, albeit at a substantial welfare cost.

Keywords: export share requirements; export subsidies; trade policy; heterogeneous firms; China (search for similar items in EconPapers)
JEL-codes: F12 F13 O47 (search for similar items in EconPapers)
Date: 2016-05-19
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Protectionism through Exporting: Subsidies with Export Share Requirements in China (2016)
Working Paper: Protectionism through exporting: subsidies with exportshare requirements in China (2016)
Working Paper: Protectionism through Exporting: Subsidies with Export Share Requirements in China (2016)
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