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Robust Rules for Industrial Policy in Open Economies.

Abstract:

The theory of strategic trade policy yields ambiguous recommendations for assistance to exporting firms in oligopolistic industries. However, some writers have suggested that investment subsidies are a more robust recommendation than export subsidies. We show that, although ambiguous in principle, the case for investment subsidies is reasonably robust in practice. Except when functional forms exhibit arbitrary non-linearities, it holds under both Cournot and Bertrand competition, with either ...

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Journal:
Journal of International Trade and Economic Development More from this journal
Volume:
10
Publication date:
2001-01-01
ISSN:
0963-8199
Language:
English
UUID:
uuid:6b3a5acb-99b8-4b36-b6d2-e37852122b66
Local pid:
oai:economics.ouls.ox.ac.uk:11021
Deposit date:
2011-08-16

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