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Globalization and State Aid

In: State Subsidies in the Global Economy

Author

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  • Nikolaos Zahariadis

Abstract

I build the asset influence model of subsidization by retaining the logic of the G-H model but adding several modifications of my own. In this way, their model works as a platform from which I can build hypotheses that may disentangle the complicated story of protectionism. Any empirical validation does not strictly verify (or not) their findings although specific hypotheses may be confirmed. A major difference refers to the level of analysis. Whereas their model was developed at the industrial sector level within a single country framework, I apply it to the level of the entire manufacturing domain (many industries) within a multiple country framework. Consequently, I drop some of their concerns with differences in contributions among groups to concentrate on other issues of importance at the national level. I also differentiate between objectives, instruments, and sectors—manufacturing and agriculture—to explore variations in model applicability.

Suggested Citation

  • Nikolaos Zahariadis, 2008. "Globalization and State Aid," Palgrave Macmillan Books, in: State Subsidies in the Global Economy, chapter 0, pages 37-57, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-61051-4_3
    DOI: 10.1057/9780230610514_3
    as

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