Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144949
Authors: 
Defever, Fabrice
Riaño, Alejandro
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 5914
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.
Subjects: 
export share requirements
export subsidies
trade policy
heterogeneous firms
China
JEL: 
F12
F13
O47
Document Type: 
Working Paper

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