EXPORT SUBSIDIES AND PROFIT-SHIFTING IN VERTICAL MARKETS

Ian Sheldon, Daniel Pick and Steve McCorriston

Journal of Agricultural and Resource Economics, 2001, vol. 26, issue 01, 17

Abstract: This study examines the interaction between export subsidies and profit-shifting in a vertical production system consisting of agricultural commodity production, and intermediate and final good processing, where the latter two stages may be characterized by imperfect competition. Using a model with general functional forms for demand, comparative statics indicate that an export subsidy to an unprocessed agricultural commodity, under certain circumstances, can have greater profit-shifting effects at the final processing stage compared to an export subsidy targeted at the final processed good.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:31151

DOI: 10.22004/ag.econ.31151

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