Protectionism through Exporting: Subsidies with Export Share Requirements in China

Fabrice Defever and Alejandro Riaño

No 2016-03, Discussion Papers from University of Nottingham, GEP

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 Subsidies; Export Share Requirements; Trade Policy; Heterogeneous (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cna, nep-int and 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 Export Share Requirements in China (2016)
Working Paper: Protectionism through exporting: subsidies with exportshare requirements in China (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:16/03

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