摘要 : This paper examines the use of strategic trade policies, such as export subsidies, to encourage domestic production of an intermediate input and a final product in a model with international rivalry between firms in two countries.... 展开 This paper examines the use of strategic trade policies, such as export subsidies, to encourage domestic production of an intermediate input and a final product in a model with international rivalry between firms in two countries. The choice of subsidies or taxes in several cases is examined. Whether subsidies are welfare-improving depends on whether firms are vertically integrated. We show that as long as firms in at least one country are vertically integrated, the optimal subsidy on final-good production is positive. 收起