IDEAS home Printed from
   My bibliography  Save this paper

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


  • Irani Arráiz

    () (Inter-American Development Bank)

  • Francisca Henríquez


  • Rodolfo Stucchi

    () (Inter-American Development Bank)


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

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: the case of peasant farmers in eastern Paraguay," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 10(1), January.
    2. Gershon Feder & Rinku Murgai & Jaime B. Quizon, 2004. "Sending Farmers Back to School: The Impact of Farmer Field Schools in Indonesia," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 45-62.
    3. Birkhaeuser, Dean & Evenson, Robert E & Feder, Gershon, 1991. "The Economic Impact of Agricultural Extension: A Review," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 607-650, April.
    4. James C. Hanson & Richard E. Just, 2001. "The Potential for Transition to Paid Extension: Some Guiding Economic Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 777-784.
    5. repec:spr:portec:v:1:y:2002:i:2:d:10.1007_s10258-002-0010-3 is not listed on IDEAS
    6. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    7. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628 Elsevier.
    8. repec:oup:revage:v:26:y:2004:i:3:p:361-372. is not listed on IDEAS
    9. Praneetvatakul, Suwanna & Waibel, Hermann, 2006. "The Impact Of Farmer Field Schools On Pesticide Use And Environment In Thailand," 46th Annual Conference, Giessen, Germany, October 4-6, 2006 14950, German Association of Agricultural Economists (GEWISOLA).
    10. Alston, Julian M. & Marra, Michele C. & Pardey, Philip G. & Wyatt, T.J., 2000. "Research returns redux: a meta-analysis of the returns to agricultural R&D," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), June.
    11. Godtland, Erin M & Sadoulet, Elisabeth & De Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2004. "The Impact of Farmer Field Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 63-92, October.
    12. Ebere Akobundu & Jeffrey Alwang & Albert Essel & George W. Norton & Abebayehu Tegene, 2004. "Does Extension Work? Impacts of a Program to Assist Limited-Resource Farmers in Virginia," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 361-372.
    13. Ariel Dinar & Giannis Karagiannis & Vangelis Tzouvelekas, 2002. "Evaluating the Impact of Public and Private Agricultural Extension on Farms Performance: A Non-Neutral Stochastic Frontier Approach," Working Papers 0205, University of Crete, Department of Economics.
    14. Owens, Trudy & Hoddinott, John & Kinsey, Bill, 2003. "The Impact of Agricultural Extension on Farm Production in Resettlement Areas of Zimbabwe," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 337-357, January.
    15. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    16. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633, March.
    17. O'Neill, S. & Matthews, A. & Leavy, A, 1999. "Farm Technical Efficiency and Extension," Trinity Economics Papers 9912, Trinity College Dublin, Department of Economics.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    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, March.

    More about this item


    Supplier Development Program; SME Policy; Impact Evaluation; Chile; PDP.;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:ovewps:0411. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Felipe Herrera Library). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.