Export subsidies, countervailing duties, and welfare

Vol. 25 No. 4 (2005)

Oct-Dec / 2005
Published March 27, 2020

How to Cite

Wang, Yu-Ter. 2005. “Export Subsidies, Countervailing Duties, and Welfare”. Brazilian Journal of Political Economy 25 (4):391-95. https://centrodeeconomiapolitica.org/repojs/index.php/journal/article/view/649.

Export subsidies, countervailing duties, and welfare

Yu-Ter Wang
Department of Economics, Ming Chuan University, No. 5, Teh-Ming Rd., Gwei-Shan, Taoyuan 333, Taiwan.
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