Will International Rules on Subsidies Disrupt the World Trading System? | Zendy

Kyle Bagwell | Zendy; Robert W. Staiger | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Will International Rules on Subsidies Disrupt the World Trading System?

Author(s) -

Kyle Bagwell,

Robert W. Staiger

Publication year - 2006

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/aer.96.3.877

Subject(s) - subsidy , harm , negotiation , tariff , economics , international trade , international economics , production (economics) , market access , rules of origin , public economics , business , microeconomics , market economy , law , political science , agriculture , ecology , biology

We provide a first formal analysis of the international rules that govern the use of subsidies to domestic production. Our analysis highlights the impact of the new subsidy disciplines that were added to GATT rules with the creation of the WTO. While GATT subsidy rules were typically viewed as weak and inadequate, our results suggest that the key changes introduced by the WTO subsidy rules may ultimately do more harm than good to the multilateral trading system by undermining the ability of tariff negotiations to serve as the mechanism for expanding market access to more efficient levels. (JEL: F02, F11, F13, F15, F53)

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research