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Introduction of export subsidies to spatial equilibrium model of international trade under tariff quota system with specific and ad valorem duties and its application to international dairy products market: The case of perfectly competitive international trade



Introduction of export subsidies to spatial equilibrium model of international trade under tariff quota system with specific and ad valorem duties and its application to international dairy products market: The case of perfectly competitive international trade



Science Bulletin of the Faculty of Agriculture Kyushu University 55(2): 259-296



Shono and Kawaguchi (1999a, 1999b, 2000), Kawaguchi and Shono (2000) present spatial equilibrium models of international trade under real tariff quota system with specific duties and ad valorem duties, and show how to integrate other international trade systems into those models. Shono (2000) applies those models to make quantitative analysis of effects of the WTO agreement on international trade of dairy products, especially focussing on effects of the change of tariff rates and current access quantities. This paper is the sequel of Shono (2000), and makes quantitative analysis of effects of the change of export subsidies on international trade of dairy products. Following Shono (2000), we study about nonfat dry milk, butter, and cheese using ten-countries perfect competition model. Countries studied are Argentine (Arg.), Australia (Aus.), Brazil (Braz.), Canada (Can.), European Union (EU), Japan (Jap.), Mexico (Mex.), New Zealand (N.Z.), Poland (Pol.), and United States of America (USA). We throw light on effects of the change of export subsidies on international trade of the above mentioned dairy products. Implications of this paper and problems to be solved in the future are also summarised.

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