Globalization and State Aid

Nikolaos Zahariadis

Chapter Chapter 3 in State Subsidies in the Global Economy, 2008, pp 37-57 from Palgrave Macmillan

Abstract: Abstract I build the asset influence model of subsidization by retaining the logic of the G-H model but adding several modifications of my own. In this way, their model works as a platform from which I can build hypotheses that may disentangle the complicated story of protectionism. Any empirical validation does not strictly verify (or not) their findings although specific hypotheses may be confirmed. A major difference refers to the level of analysis. Whereas their model was developed at the industrial sector level within a single country framework, I apply it to the level of the entire manufacturing domain (many industries) within a multiple country framework. Consequently, I drop some of their concerns with differences in contributions among groups to concentrate on other issues of importance at the national level. I also differentiate between objectives, instruments, and sectors—manufacturing and agriculture—to explore variations in model applicability.

Keywords: Foreign Direct Investment; Trade Openness; Capital Mobility; Portfolio Investment; Total Trade (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-61051-4_3

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DOI: 10.1057/9780230610514_3

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