Arbeitspapier
China's Pure Exporter Subsidies
One third of Chinese exporters sell more than ninety percent of their production abroad. We argue that this distinctive pattern is attributable to the widespread use of subsidies that require firms to export the vast majority of their output. We study this type of subsidy in the context of a heterogeneous-firm model, and show that it is worse from a welfare standpoint than a regular export subsidy, partly because it increases protection of the domestic market. A counterfactual analysis suggests that eliminating these subsidies would result in a welfare gain for China comparable to that of halving its trade costs.
- Language
-
Englisch
- Bibliographic citation
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Series: FIW Working Paper ; No. 121
- Classification
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Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade Policy; International Trade Organizations
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Subject
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Trade Policy
Export Subsidies
Heterogeneous Firms
China
- Event
-
Geistige Schöpfung
- (who)
-
Defever, Fabrice
Riaño, Alejandro
- Event
-
Veröffentlichung
- (who)
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FIW - Research Centre International Economics
- (where)
-
Vienna
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Defever, Fabrice
- Riaño, Alejandro
- FIW - Research Centre International Economics
Time of origin
- 2013
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