Export Subsidies in Emerging Markets During the Great Trade Collapse

Chávez J.F.; Cusato Novelli A.; Leon M.P. · Economics Bulletin (2020)

Resumen

We estimate the impact of an export subsidy program in Peru during the Great Trade Collapse. Historically, Peruvian firms have accessed a five percent subsidy on the FOB value of exports. The rate increased up to eight percent during the crisis. For the years 2009-2010, we find that supported firms experienced a lower decline in export values and a lower exit probability of product-destination markets.

Instituciones: Universidad del Pacífico