Publication Type

Book Chapter

Version

publishedVersion

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

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.

Additional URL

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

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