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Title: |
Japanese Loan Subsidies for Structural
Adjustment and Their Effects on Trade with the United States |
| Author: |
Pollard, Walker
A.; Berg, Gerald C. |
| Author
Affiliation: |
US ITC |
| Source: |
International Economic Journal, Spring 1994, v. 8, no. 1, pp. 1-10 |
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Publication Date: |
Spring 1994 |
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Abstract: |
In recent years there has been a
proliferation of international trade disputes centering on domestic
economic policies that are alleged to affect trade and the economies of
trading partners. Estimates of the effects of these policies are rare,
in spite of their value to policymakers. One such policy was a Japanese
program to aid in the structural adjustment of small- and medium-sized
exporting firms hurt by the appreciation of the yen after 1985. We
introduce a methodology for estimating the effects of a subsidy to a
subset of producers in an industry in one country on export prices and
the output of the competing industry of a trading partner, and we apply
it to the Japanese program. We show that subsidized loans provided under
the program had minimal effects on competing industries in the United
States. |
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