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The Cyclical Effects of Incremental Export Subsidies

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  • EPHRAIM KLEIMAN
  • JONATHAN J. PINCUS

Abstract

The Crawford Committee on structural adjustment in Australia recommended a subsidy to be paid on the excess of manufacturing export revenues over the average of some number of previous years. Schemes, of this nature have been used in New Zealand. Pakistan, Singapore and elsewhere, and may produce a regular cycle in exports and in domestic prices and quantities. A subsidy‐induced cycle is unlikely to be avoided in most Australian manufacturing export industries, except under conditions of rapid inflation or productivity ‐growth. The cyclical pattern can be avoided, at some cost to the Treasury, by setting the subsidy base at some fraction of actual past performance.

Suggested Citation

  • Ephraim Kleiman & Jonathan J. Pincus, 1981. "The Cyclical Effects of Incremental Export Subsidies," The Economic Record, The Economic Society of Australia, vol. 57(2), pages 140-149, June.
    • Handle: RePEc:bla:ecorec:v:57:y:1981:i:2:p:140-149
    DOI: 10.1111/j.1475-4932.1981.tb01046.x
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    References listed on IDEAS

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    1. Kleiman, Ephraim & Pincus, Jonathan J, 1982. "The Australian Export Expansion Grants Scheme," Australian Economic Papers, Wiley Blackwell, vol. 21(38), pages 85-105, June.
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    Cited by:

    1. E. Kleiman & J.J. Pincus, 1986. "Incremental Export Subsidies: A Rejoinder," The Economic Record, The Economic Society of Australia, vol. 62(1), pages 93-94, March.
    2. Martin Richardson & Simon Wilkie, 1986. "Incremental Export Subsidies," The Economic Record, The Economic Society of Australia, vol. 62(1), pages 88-92, March.

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    2. E. Kleiman & J.J. Pincus, 1986. "Incremental Export Subsidies: A Rejoinder," The Economic Record, The Economic Society of Australia, vol. 62(1), pages 93-94, March.

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