Export Subsidies as Instruments of Economic and Foreign Policy

by Stephen W. Salant


Download eBook for Free

FormatFile SizeNotes
PDF file 1.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback48 pages $23.00 $18.40 20% Web Discount

The use of direct and indirect subsidies to promote exports is a popular instrument of trade policy in many countries. Of particular concern in this study is the use of such subsidies to promote Western exports to the Soviet Union and its allies. It investigates some of the arguments that could be used to justify such subsidies either because they improve the economic welfare of the exporting countries or because they promote behavior by the Soviet Union that is more compatible with the goals of the West. The study concludes that, on balance, there is no strong justification for export subsidies on economic grounds, but that it is possible to adopt a two-tier tax/subsidy system that may produce foreign policy benefits that outweigh the economic effects.

This report is part of the RAND Corporation note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.