JOURNAL ARTICLE
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Markteintritt durch Exportsubventionen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 110 (1990), Iss. 1 : pp. 83–91
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Rauscher, Michael
References
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Abstract
If high fixed costs prevent a domestic firm from entering a foreign market, the government of the home country can induce entry by providing export subsidies. This paper compares two types of subsidies. It is shown that a lump-sum subsidy is superior to output-related subsidies since the latter bias the firm’s decision about its production.