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Taking trade policy seriously : Export subsidization as a case study in policy effectiveness

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  • Taking trade policy seriously
  • Rodrik, Dani
  • National Bureau of Economic Research


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Title Taking trade policy seriously
Similar Titles
Sub Title

Export subsidization as a case study in policy effectiveness

Material Type Reports
Author(English)

Rodrik, Dani

Publisher

Cambridge:National Bureau of Economic Research

Date 1993-12
Series Title; No NBER Working Paper Series / 4567
Pages 42
Subject Country Kenya(Africa)
Bolivia(Americas)
Brazil(Americas)
India(Asia and Pacific)
South Korea(Asia and Pacific)
Turkey(Middle East)
Language English
File Type Link
Original Format pdf
Subject Economy < Trade
Holding National Bureau of Economic Research

Abstract

In thinking about policy, academic economists alternate between theoretical models in which governments can design finely-tuned optimal interventions and practical considerations which usually assume the government to be incompetent and hostage to special interests. I argue in this paper that neither of these caricatures is accurate, and that there is much to be learned by undertaking systematic, analytical studies of state capabilities -- how they are generated and why they differ across countries and issue areas. Case studies of export subsidization in Korea, Brazil, Turkey, India, Kenya, and Bolivia are presented to confront usual presumptions against actual experience. Contrary to conventional wisdom, the successful cases (Korea and Brazil) turn out to be ones in which the government exercised discretion and selectivity, while the most uniform and non-discretionary cases (Kenya and Bolivia) were clear failures. The paradox is explained in terms of state autonomy and policy coherence.