ABSTRACT
The 'additionally criterion' is crude but at least it aims at concentrating state support on those exporters who are unlikely to clinch a deal without subsidies. The export cult would be dealt a heavy blow if the debate on the subsidisation of foreign sales revolved around the marginal cost of attaining one extra dollar and/or creating one additional job. The requests to know the national expenditure on export subsidies – and the marginal costs of generating more exports – run counter to the best interests of the export zealots. Once genuine numerical details are made available on the cost of attaining one extra dollar and one additional job, some dreadful conclusions are brought to light. Bureaucrats are generally averse to the disclosure of facts that might help outsiders to challenge the wisdom of their decision-making. Using the simple marginal tool, economists cast aside the 50 per cent figure as irrelevant.
