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EXPORT SUBSIDIES AS SIGNALS OF COMPETITIVENESS
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UNSPECIFIED (1993) EXPORT SUBSIDIES AS SIGNALS OF COMPETITIVENESS. In: CONF OF THE INTERNATIONAL-ECONOMICS-STUDY-GROUP, MANCHESTER, ENGLAND, APR, 1992. Published in: SCANDINAVIAN JOURNAL OF ECONOMICS, 95 (3). pp. 327-339. ISSN 0347-0520.
Research output not available from this repository, contact author.Abstract
In a Cournot duopoly model of international competition between a domestic and foreign firm, it is shown that when the foreign firm has incomplete information about the marginal cost of the domestic firm then the domestic government can use an export subsidy to signal the competitiveness of its firm. This signalling effect strengthens the usual profit-shifting argument for an export subsidy, The optimal export subsidy in the signalling equilibrium may be twice as large as the optimal profit-shifting export subsidy under complete information.
| Item Type: | Conference Item (UNSPECIFIED) | ||||
|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions | ||||
| Journal or Publication Title: | SCANDINAVIAN JOURNAL OF ECONOMICS | ||||
| Publisher: | BLACKWELL PUBL LTD | ||||
| ISSN: | 0347-0520 | ||||
| Official Date: | 1993 | ||||
| Dates: |
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| Volume: | 95 | ||||
| Number: | 3 | ||||
| Number of Pages: | 13 | ||||
| Page Range: | pp. 327-339 | ||||
| Publication Status: | Published | ||||
| Title of Event: | CONF OF THE INTERNATIONAL-ECONOMICS-STUDY-GROUP | ||||
| Location of Event: | MANCHESTER, ENGLAND | ||||
| Date(s) of Event: | APR, 1992 |
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