Protectionism through exporting: subsidies with exportshare requirements in China

Fabrice Defever and Alejandro Riaño

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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 share requirements; export subsidies; trade policy; heterogeneous firms; China (search for similar items in EconPapers)
JEL-codes: F12 F13 O47 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016-05
New Economics Papers: this item is included in nep-cna, nep-int, nep-sog and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/67659/ Open access version. (application/pdf)

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 Export Share Requirements in China (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:67659

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