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Perspectives on Subsidies and Trade Protection

In: State Subsidies in the Global Economy

Author

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  • Nikolaos Zahariadis

Abstract

A good way to understand subsidization efforts is to survey the explanations advanced by other analysts. Such review exposes deficiencies in current thinking about trade protection and helps place the contributions made by the present study in a broader context. I review two approaches to trade protection: society-centered and state-centered perspectives. While each illuminates different aspects of the subsidization puzzle, both suffer from serious analytical gaps. I then explore the merit of yet another theoretical attempt that takes elements of the two approaches and blends them in a theoretically concise and meaningful way. I flesh out this synthetic model and identify its limitations, which I overcome in subsequent chapters. Although the overwhelming majority of studies on protection refer to instruments such as tariffs or quotas, the logic applies to protection in the form of subsidies as well.

Suggested Citation

  • Nikolaos Zahariadis, 2008. "Perspectives on Subsidies and Trade Protection," Palgrave Macmillan Books, in: State Subsidies in the Global Economy, chapter 0, pages 23-36, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-61051-4_2
    DOI: 10.1057/9780230610514_2
    as

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