TY - JOUR

T1 - State-aid programs of BRICS countries: Case of transport equipment trade

AU - Koval, A. G.

AU - Mogucheva, A. B.

N1 - Koval A. G., Mogucheva A. B. State-aid programs of BRICS countries: Case of transport equipment trade. St Petersburg University Journal of Economic Studies, 2018, vol. 34, issue 3, pp. 415–438. https://doi.org/10.21638/spbu05.2018.304

PY - 2018

Y1 - 2018

N2 - State aid or subsidy programs are a common practice in developed and developing countries for supporting national companies. Despite the fact that they are strictly regulated by the WTO rules, BRICS countries actively apply this measure, even though they claim to adhere to the usual path of liberalization and trade cooperation. Te aim of the paper is to reveal the distinguishing features of such programs in BRICS counties for trade in transport equipment. Using a cross-country comparative analysis and case studies, the authors frst explain the controversy in theoretical approaches to state aid policy analysis. Tey then identify the peculiarities of non-tarif measures applied by BRICS and the role of state aid. Finally, the authors present data from specifc case studies in transport equipment trade. Te authors conclude that the efectiveness of subsidies in the transport sector is not obvious, as dynamics of imports and exports of relevant products depends on various external factors. Nevertheless, the application of state aid in the industry provides national producers a more favorable environment. State aid programs, in most cases, do not comply with WTO regulations, which implies trade distortion and could provoke trade disputes. BRICS countries should strengthen monitoring of these programs and focus on the opportunity for applying horizontal rather than vertical subsidies.

AB - State aid or subsidy programs are a common practice in developed and developing countries for supporting national companies. Despite the fact that they are strictly regulated by the WTO rules, BRICS countries actively apply this measure, even though they claim to adhere to the usual path of liberalization and trade cooperation. Te aim of the paper is to reveal the distinguishing features of such programs in BRICS counties for trade in transport equipment. Using a cross-country comparative analysis and case studies, the authors frst explain the controversy in theoretical approaches to state aid policy analysis. Tey then identify the peculiarities of non-tarif measures applied by BRICS and the role of state aid. Finally, the authors present data from specifc case studies in transport equipment trade. Te authors conclude that the efectiveness of subsidies in the transport sector is not obvious, as dynamics of imports and exports of relevant products depends on various external factors. Nevertheless, the application of state aid in the industry provides national producers a more favorable environment. State aid programs, in most cases, do not comply with WTO regulations, which implies trade distortion and could provoke trade disputes. BRICS countries should strengthen monitoring of these programs and focus on the opportunity for applying horizontal rather than vertical subsidies.

KW - state aid

KW - SUBSIDY

KW - non-tariff measures

KW - BRICS

KW - protectionism

KW - foreign trade

KW - trade in transport equipment

KW - государственная помощь

KW - субсидия

KW - нетарифные меры

KW - БРИКС

KW - протекционизм

KW - внешняя торговля

KW - торговля транспортным оборудованием

UR - https://elibrary.ru/item.asp?id=36787672

M3 - Article

VL - 34

SP - 415

EP - 438

JO - ВЕСТНИК САНКТ-ПЕТЕРБУРГСКОГО УНИВЕРСИТЕТА. ЭКОНОМИКА

JF - ВЕСТНИК САНКТ-ПЕТЕРБУРГСКОГО УНИВЕРСИТЕТА. ЭКОНОМИКА

SN - 1026-356X

IS - 3

ER -