Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)


Understanding subsidies: a key tool in economic policy

Author(s): Denice Olivier

Landscape of subsidies, elucidating their multifaceted role in shaping economies worldwide. It scrutinizes the rationales behind subsidy implementation, ranging from correcting market failures to fostering strategic industries and addressing social inequalities. Furthermore, the paper explores the diverse forms subsidies can take, encompassing direct financial assistance, tax breaks, and regulatory incentives. It analyzes the benefits and drawbacks associated with subsidies, highlighting their potential to stimulate innovation, alleviate poverty, and enhance competitiveness while also acknowledging their susceptibility to misuse, market distortions, and fiscal strain.

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