This paper sets out to test the robustness of Balassa's recommendation of neutral incentives to domestic and export sales in a setting where some sectors have domestic market power. This paper shows analytically that the welfare effects of trade policy are more complex than they are in a setting of across-the-board constant returns to scale. In particular, it shows, analytically and numerically, that the standard distortionary costs of protection...
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INFORMATION
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1990/08/31
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Document de travail de recherche sur les politiques
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WPS480
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1
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1
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2010/07/01
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An evaluation of neutral trade policy incentives under increasing returns to scale
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export subsidies
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