|
Deep Blue at the University of Michigan >
All Collections >
International Policy Center (IPC) - Working Paper Series >
|
Please use this persistent URL to cite or link to this item:
|
| Title: | Economic Effects of “Leveling the Playing Field” in International Trade |
| Authors: | Deardorff, Alan |
| Keywords: | Economic Effects
Leveling the Playing Field
International Trade |
| Issue Date: | 10-Sep-2009 |
| Series/Report no.: | 87 |
| Abstract: | This paper uses simple economic theory to examine the effects of various policies that are intended to level the playing field in international trade. That is, when foreign producers are given advantages over domestic producers by government subsidies or other interventions that lower their costs, domestic firms may argue that their own governments should either provide comparable assistance or should protect them from competing with the foreign firms on grounds of fairness. Economic analysis easily shows that granting these requests is usually harmful for the domestic economy as a whole, but that may not prevent such policies from being implemented. Therefore this paper examines what the further effects of such policies may be. The main conclusion that emerges is that policies to level the playing field most often overcompensate those who request them, making them better off than if the playing field had not be tilted against them in the first place. |
| Appears in Collections: | International Policy Center (IPC) - Working Paper Series
|
Files in This Item:
| File |
Description |
Size | Format | |
|---|
| ipc-87-deardorff-economic-effects-leveling-playing-field-international-trade.pdf | | 487Kb | Adobe PDF | View/Open |
|
Deep Blue encourages the fair use of copyrighted material, and you are free to link to content here without asking for permission. Consult the document(s) and/or contact the copyright holder for additional rights questions and requests.
|
