Robust rules for industrial policy in open economics

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dc.contributor.author Leahy, Dermot
dc.contributor.author Neary, J. Peter
dc.date.accessioned 2009-07-23T13:52:55Z
dc.date.available 2009-07-23T13:52:55Z
dc.date.issued 2001-01-24
dc.identifier.uri http://hdl.handle.net/10197/1281
dc.description.abstract The theory of strategic trade policy yields ambiguous recommendations for assistance to exporting firms in oligopolistic industries. However, some writers have suggested that investment subsidies are a more robust recommendation than export subsidies. We show that, though ambiguous in principle, the case for investment subsidies is reasonably robust in practice. Except when functional forms exhibit arbitrary non-linearities, it holds under both Cournot and Bertrand competition, with either cost-reducing or market-expanding investment, and with or without spillovers. Only if firms have strong asymmetries in their investment behaviour and engage in Bertrand competition is an investment tax clearly justified. en
dc.description.sponsorship The Economic and Social Research Council (ESRC) en
dc.format.extent 215462 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP00/21 en
dc.relation.isversionof Neary, J. P. and Leahy, D. "Robust Rules for Industrial Policy in Open Economies". Presented at Dynamics, Economic Growth, and International Trade, V, An International Conference, Rome, 23-24 June 2000 en
dc.relation.isversionof Leahy, D & Neary, J. P. "Robust rules for industrial policy in open economies". Presented at European Trade Study Group Second Annual Conference, Glasgow, 15-17 September 2000 en
dc.subject Cost-reducing investment en
dc.subject Export subsidies en
dc.subject Market-expanding investment en
dc.subject R&D subsidies en
dc.subject Strategic industrial policy en
dc.subject Strategic trade policy en
dc.subject.classification F12 en
dc.subject.classification L13 en
dc.subject.lcsh Commercial policy en
dc.subject.lcsh Subsidies en
dc.subject.lcsh Competition, Imperfect en
dc.subject.lcsh Industrial policy en
dc.title Robust rules for industrial policy in open economics en
dc.type Working Paper en
dc.internal.authorid UCD0042 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://www.ucd.ie/economics/research/papers/2000/WP00.21.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Leahy|Dermot|aut| en
dc.neeo.contributor Neary|J. Peter|aut|UCD0042 en


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