Title: Industrial Policy As an Alternative to Trade Policy: Helping By Hurting*
Abstract: Abstract Abstract Industrial policies that are essentially nonlinear taxes or subsidies on adjustment costs of domestic firms affect those firms' market power in oligopolistic international markets. These adjustment policies often can achieve a strategic purpose at lower cost to the government than linear trade or investment subsidies and are less likely to result in retaliation by other governments. Many governments, however, use adjustment policies for nonstrategic purposes without recognizing that they are reducing their firms' market power by subsidizing adjustment costs rather than taxing them.
Publication Year: 1993
Publication Date: 1993-10-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 1
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