Export subsidies and oligopolistic rivalry between labor-managed and capitalist economies
Resource
Journal of Comparative Economics, 13(3), 473-480
Journal
Journal of Comparative Economics
Journal Volume
13
Journal Issue
3
Pages
473-480
Date Issued
1989
Author(s)
Mai, Chao-Cheng
Abstract
The purpose of this paper is to examine the efficacy of export subsidization in a labor-managed economy. It will be shown that contrary to a capitalist economy, an export tax rather than a subsidy becomes an effective policy tool for a labor-managed economy to adopt in order to expand its market share. It is also demonstrated that an export subsidy of the domestic labor-managed country decreases the benefits of its own and the importing country, but increases the welfare of the foreign-competing capitalist. © 1989.
SDGs
Type
journal article