ABSTRACT
Jian, M.; Sun, F.-S., and Hayrutdinov, S., 2019. Analysis of government differential weight subsidy in an emerging coastal industry supply chain. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 851–858. Coconut Creek (Florida), ISSN 0749-0208.
This paper constructs the government cash subsidy strategical model based on the expected profits of the supply chain members. The results show that the existence of the optimal subsidy coefficient makes the supply chain member's expected profits reach the maximum value, but the members in the supply chain have the motivation to reduce the internal funds in order to erode the government subsidy dividend. Thus, to explore this problem, the paper applies the government tax reduction subsidy strategical approach with the cash subsidy strategy. Furthermore, the study proves that the government tax reduction subsidy tends to subsidize the supply chain members with higher production cost and improved subsidy strategy has no influence on the optimal decision time of downstream member. On this basis, the government can effectively prevent downstream members from hiding funds and eroding the divided subsidy through the application of comprehensive subsidy policies to protect the accumulation of emerging coastal industries development.
