Publication Type

Book Chapter

Publication Date

3-2016

Abstract

This survey pays attention to a recent development of the literature that analyzes two important regulatory features found in the Agreement on Subsidies and Countervailing Measures (the SCM agreement): the restrictive treatment of domestic subsidies and the general prohibition of export subsidies. The WTO's restriction on domestic subsidies is challenged by the existing terms-of-trade theory that offers an efficiency foundation for the market-access focus of the GATT rules. On the other hand, against the backdrop of the SCM agreement and preferential trade agreements (PTAs), a recent literature attempts to provide a rationale for the WTO to restrict the use of domestic subsidies and for trade agreements to take a deep-integration approach to domestic policies. To offer a rationale for the prohibition of export subsidies, a recent literature considers a firm-delocation externality and a profit-shifting externality in various imperfect competition settings.

Keywords

SCM agreement, Domestic subsidies, Export subsidies, Countervailing duties, Shallow integration, Deep integration, Delocation, Profit-Shifting

Discipline

Finance | International Economics

Research Areas

International Economics

Publication

Handbook of Commercial Policy

Volume

1B

Editor

Kyle Bagwell & Robert W. Staiger

First Page

161

Last Page

210

ISBN

9780444639226

Identifier

10.1016/bs.hescop.2016.04.009

Publisher

Elsevier

City or Country

San Diego

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1016/bs.hescop.2016.04.009

Comments

"Handbook of Commercial Policy" has been published in 2016. There is only the publication year, not the publication date. Please see the DOI link for more detail.

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