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The incentive for export subsidies under imperfect competition
Authors:Yasuhito Tanaka
Institution:(1) Yamagata University, Japan
Abstract:By taking into account factor market interactions, the theory of strategic trade policies can consistently explain the fact that less efficient countries offer greater export subsidies to the most technologically advanced industries because in these countries there may be greater differences in efficiency of production technology between industries than in more efficient countries.
Keywords:export subsidy  imperfect competition  difference in efficiency of technology
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