Subsidies and Spillovers in a Value Chain World: New Rules Required?

32 Pages Posted: 14 Dec 2018

See all articles by Bernard Hoekman

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Date Written: July 1, 2015

Abstract

Assessing the effects of subsidies is complicated, given the need to consider linkages within and across supply chain networks. A precondition for determining whether existing WTO disciplines on subsidies are adequate is better information and more empirical research on the extent to which negative international spillovers are created by prevailing policies. Many of the policies that affect supply chain operations are not considered subsidies under the WTO. There are no rules on subsidies for services or investment incentives. Conversely, some WTO rules may not be appropriate or effective given the increasing prevalence of value chains. There is an urgent need for policy analysis to determine how existing WTO disciplines impact on value chain s and whether and how large the negative spillovers are of national policies. A necessary condition for any such determination is much better data on the measures that are employed by governments around the world, both at the central and sub-central levels.

Keywords: Subsidies, value chains, investment, incentives, WTO

JEL Classification: F13

Suggested Citation

Hoekman, Bernard, Subsidies and Spillovers in a Value Chain World: New Rules Required? (July 1, 2015). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS PP 2015/03, Available at SSRN: https://ssrn.com/abstract=2637264 or http://dx.doi.org/10.2139/ssrn.2637264

Bernard Hoekman (Contact Author)

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
18
Abstract Views
188
PlumX Metrics