Export Promotion and Welfare

Takashi Negishi and Takashi Negishi
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Takashi Negishi: The Japan Academy
Takashi Negishi: The University of Tokyo

Chapter Chapter 14 in Developments of International Trade Theory, 2014, pp 99-103 from Springer

Abstract: Abstract In view of the acknowledged success of the post-war Japan, where export promotion policies have played an important role, the role of subsidies in export industries should be studied from the point of view of the welfare of a country in an international economy. Except for the case of domestic distortions (see Problem 13.3), however, it is difficult to justify export subsidy by the use of the standard two-country two-commodity model of the international trade theory. In fact, it seems to be a well-established fact the export subsidies always reduce a country’s economic welfare in a competitive economy with full price flexibility.

Keywords: Subsidies in export industry; Tax on export (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advchp:978-4-431-54433-3_14

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DOI: 10.1007/978-4-431-54433-3_14

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