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Export Subsidies and High Productivity: Cause or Effect?

David De Meza
The Canadian Journal of Economics / Revue canadienne d'Economique
Vol. 19, No. 2 (May, 1986), pp. 347-350
Published by: Wiley on behalf of the Canadian Economics Association
DOI: 10.2307/135289
Stable URL: http://www.jstor.org/stable/135289
Page Count: 4
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Export Subsidies and High Productivity: Cause or Effect?
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Abstract

According to the emerging strategic theory of trade policy, countries selling in imperfectly competitive world markets may benefit from export subsidies. This paper demonstrates that the theory predicts that it is the countries with the lowest production costs that offer the highest subsidies. It is argued that this result diminishes the attraction of the theory as a positive explanation of trade policy. /// Subventions à l'exportation et forte productivité: cause ou effet? Selon les canons de la théorie stratégique de politique commerciale en train de se développer, il se pourrait que des pays vendant sur des marchés mondiaux imparfaitement concurrentiels puissent tirer profit de subventions à l'exportation. Ce mémoire montre que cette théorie prédit que ce sont les pays qui ont les plus bas coûts de production qui offrent les plus grandes subventions. L'auteur suggère que ce résultat diminue l'attrait de cette théorie en tant qu'explication positive de la politique commerciale.

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