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Firms' responses to relative price changes in Cote d'Ivoire : the implications for export subsidies and devaluations (Английский)

Since the early 1980s, export subsidies have been proposed as a way to counteract the adverse effects of an exchange rate overvaluation among member countries of the West African Monetary Union. It was felt that one way to alter the relative price of traded to nontraded goods was to attempt to mimic devaluation by raising import tariffs and export subsidies by the same proportion. This paper models the short-run response of firms to exogenous changes...
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