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Export Promotion and Welfare

In: Developments of International Trade Theory

Author

Listed:
  • Takashi Negishi

    (The Japan Academy)

  • Takashi Negishi

    (The University of Tokyo)

Abstract

In view of the acknowledged success of the post-war Japan, where export promotion policies have played an important role, the role of subsidies in export industries should be studied from the point of view of the welfare of a country in an international economy. Except for the case of domestic distortions (see Problem 13.3), however, it is difficult to justify export subsidy by the use of the standard two-country two-commodity model of the international trade theory. In fact, it seems to be a well-established fact the export subsidies always reduce a country’s economic welfare in a competitive economy with full price flexibility.

Suggested Citation

  • Takashi Negishi & Takashi Negishi, 2014. "Export Promotion and Welfare," Advances in Japanese Business and Economics, in: Developments of International Trade Theory, edition 2, chapter 0, pages 99-103, Springer.
    • Handle: RePEc:spr:advchp:978-4-431-54433-3_14
    DOI: 10.1007/978-4-431-54433-3_14
    as

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