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The Cost of Export Subsidies: Evidence from Costa Rica

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  • Alexander Hoffmaister

    (International Monetary Fund)

Abstract

A model is developed to estimate the effects of export subsidies on the supply of exports. With data for Costa Rica over the 1980s, it is shown that although the export subsidy scheme in operation led to an increase in exports, the direct fiscal costs of the scheme were substantial. Furthermore, the subsidy scheme led to a significant increase in imports. These results suggest that elimination of export subsidies would not have a particularly harmful effect on the trade balance, and would, in addition, increase the fiscal position and generate economic efficiency.

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.

Volume (Year): 39 (1992)
Issue (Month): 1 (March)
Pages: 148-174

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Handle: RePEc:pal:imfstp:v:39:y:1992:i:1:p:148-174

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Cited by:
  1. Stanley, Denise L., 2003. "The Economic Impact of Mariculture on a Small Regional Economy," World Development, Elsevier, vol. 31(1), pages 191-210, January.
  2. Reinhart, Carmen, 1995. "Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries," MPRA Paper 6974, University Library of Munich, Germany.
  3. Shabbir, Safia & Iqbal, Javed & Hameed, Saima, 2013. "Risk Premium, Interest Rate Differential, and Subsidized Lending in Pakistan," MPRA Paper 48250, University Library of Munich, Germany.

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