EXPORT SUBSIDIES AND PROFIT-SHIFTING IN VERTICAL MARKETS
This study examines the interaction between export subsidies and profit-shifting in a vertical production system consisting of agricultural commodity production, and intermediate and final good processing, where the latter two stages may be characterized by imperfect competition. Using a model with general functional forms for demand, comparative statics indicate that an export subsidy to an unprocessed agricultural commodity, under certain circumstances, can have greater profit-shifting effects at the final processing stage compared to an export subsidy targeted at the final processed good.
Year of publication: |
2001
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Authors: | Sheldon, Ian M. ; Pick, Daniel H. ; McCorriston, Steve |
Published in: |
Journal of Agricultural and Resource Economics. - Western Agricultural Economics Association - WAEA. - Vol. 26.2001, 01
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Publisher: |
Western Agricultural Economics Association - WAEA |
Keywords: | International Relations/Trade |
Saved in:
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