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Impact of the Chilean Supplier Development Program on the performance of SME and their large firm customers

Author

Listed:
  • Irani Arráiz

    (Inter-American Development Bank)

  • Francisca Henríquez
  • Rodolfo Stucchi

    (Inter-American Development Bank)

Abstract

This paper evaluates the impact of the Chilean Supplier Development Program, aimed at improving and stabilizing the commercial linkages between small and medium-sized suppliers and their large firm customers, during the period 2003-2008. Applying propensity score matching and difference-in-differences, we find that both groups of firms benefited from the coordination efforts. The program increased sales, employment, and the sustainability of small and medium-sized suppliers. It also increased the sales of large firms and raised their ability of becoming exporters. We also find that the timing of the effect is different for suppliers and large firms. While the effect on suppliers appeared one year after the firms enrolled in the program, the effect on large firms took two years to appear.

Suggested Citation

  • Irani Arráiz & Francisca Henríquez & Rodolfo Stucchi, 2011. "Impact of the Chilean Supplier Development Program on the performance of SME and their large firm customers," OVE Working Papers 0411, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    • Handle: RePEc:idb:ovewps:0411
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    File URL: http://idbdocs.iadb.org/WSDocs/getdocument.aspx?docnum=36182301
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    Cited by:

    1. -, 2012. "Latin American Economic Outlook 2013: SMEs policies for structural change," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1464 edited by Oecd.
    2. Pierfederico Asdrubali & Simone Signore, 2015. "The Economic Impact of EU Guarantees on Credit to SMEs Evidence from CESEE Countries," European Economy - Discussion Papers 002, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

    More about this item

    Keywords

    Supplier Development Program; SME Policy; Impact Evaluation; Chile; PDP.;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy

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