Tariffs and export subsidies in a spatial economic model

Do Truong Giang

No 65, Volkswirtschaftliche Diskussionsbeiträge from Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät

Abstract: In the recent years there are many researchs discussing the effects of trade policy (tariffs, subsidies etc.) in international trade. The results are manifold. Some authors show that trade policy has negative effects on welfare, some spatial economists demonstrate that trade policy can have positive effects on welfare. This paper considers the effects of the trade policy made by both countries participating in international trade in a spatial economic model. It can be showed that trade policy of both trade partners (tariffs of one country and export subsidies of the other country) can improve the world welfare in comparison with free trade.

Date: 2004
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pot:vwldis:65

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