Export subsidies, countervailing duties, and welfare
Brazilian Journal of Political Economy, Vol. 25 No. 4 (2005), Oct-Dec / 2005, Pages 391-395
Using a simple Cournot duopoly model, this paper provides an important policy implication for trade disputes involving export subsidies. In this paper, the possibility that a foreign export subsidy could benefit the domestic country as well as the foreign country by appropriately using countervailing duties is identified.
JEL Classification: F12; F13; L13.
Keywords: Export subsidies Countervailing duties Welfare Countervailing percentage Cost-efficiency