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Industrial Policy and Trade Promotion in Uruguay: Which are the Effects?

Author

Listed:
  • Adriana Peluffo

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Alvaro Brunini

    (Uruguay XXI)

Abstract

Exporting plays a central role in economic growth, especially in small economies. In this work we analyze an industrial policy aimed at fostering exports: the Temporary Admission Regime (TA). To this aim we use a panel of Uruguayan firms for the period 2005-2016. We use two evaluation techniques: binary treatment effects on matched firms and continuous treatment effects. These techniques allow controlling for selectivity into the treatment and selection bias. We find positive effects of Temporary Admission on trade performance, and particularly on export performance, while there are no clear effects on the firm’s total factor productivity and employment.

Suggested Citation

  • Adriana Peluffo & Alvaro Brunini, 2024. "Industrial Policy and Trade Promotion in Uruguay: Which are the Effects?," Documentos de Trabajo (working papers) 24-02, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-02-24
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    File URL: https://hdl.handle.net/20.500.12008/43453
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    More about this item

    Keywords

    industrial policy; temporary admission; export performance; productivity; causal effect;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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