Economic Effects of Export Subsidy in the WTO Framework

摘要

This paper analyzed the economic effects of export subsidy, shows that in the perfect market, subsidizing exports reduces national welfare, whereas in the presence of market failures, government may improve national welfare using a subsidy, with losses of the importing country. To reduce the negative effects of subsidy, the Chinese government could focus on subsidies that are non-actionable subsidies and take a good control of the quantity and form of subsidies.