The Cost of Export Subsidies: Evidence from Costa Rica
AbstractA 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 InfoArticle provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 39 (1992)
Issue (Month): 1 (March)
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Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Other versions of this item:
- Alexander W. Hoffmaister, 1991. "The Cost of Export Subsidies: Evidence from Costa Rica," IMF Working Papers 91/94, International Monetary Fund.
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
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- Carmen Reinhart, 1994. "Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries," IMF Working Papers 94/140, International Monetary Fund.
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