Welfare Comparison between Specific and Ad Valorem Export Trade Policy the Case of Multi-Domestic Firms

This paper extends the results obtained by Hwang et al. (1997) and Yang (2005) to the case of multi-domestic firms. Either the domestic government's budget constraint may be binding or there exists the social cost which caused by financing the export subsidy, we find that the policy of the specific export subsidy dominates that of ad valorem export subsidy and ad valorem export tax dominates specific export tax under the case of multi-domestic firms.

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Year of publication:	2010
Authors:	Ueng, K.L. Glen ; Kuo, Horn-In
Published in:	Journal of Economics and Management. - College of Business, ISSN 1819-0917. - Vol. 6.2010, 1, p. 17-32
Publisher:	College of Business
Subject:	cost heterogeneity \| specific export subsidy \| ad valorem export subsidy \| tax distortion

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Extent:	application/pdf text/html
Type of publication:	Article
Language:	Chinese
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F13 - Commercial Policy; Protection; Promotion; Trade Negotiations ; H25 - Business Taxes and Subsidies
Source:	RePEc - Research Papers in Economics

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