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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 nonlinearities, it holds under both Cournot and Bertrand competition, with either c...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1080/09638190110073778

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Institution:
University College Dublin
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Institution:
University of Oxford
Research group:
Industrial Economics
Oxford college:
Merton College
Department:
Social Sciences Division - Economics
Publisher:
Routledge
Journal:
Journal of International Trade and Economic Development Journal website
Volume:
10
Issue:
4
Pages:
393-409
Publication date:
2001-12-05
DOI:
EISSN:
1469-9559
ISSN:
0963-8199
URN:
uuid:ff7e9761-bdc3-4b52-87e7-1919480c4a30
Local pid:
ora:2132

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