The Cost of Export Subsidies: Evidence From Costa Rica

This paper develops a model to estimate the effects of export subsidies on the supply of exports. Using data for Costa Rica over the 1980's, it is shown that while the export subsidy scheme in operation led to an increase in exports, the direct fiscal costs of the scheme were quite large. Furth...

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Bibliographic Details
Main Author: Hoffmaister, Alexander W. (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1991
Series:IMF Working Papers Working Paper No. 91/94
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Summary:This paper develops a model to estimate the effects of export subsidies on the supply of exports. Using data for Costa Rica over the 1980's, it is shown that while the export subsidy scheme in operation led to an increase in exports, the direct fiscal costs of the scheme were quite large. Furthermore, the subsidy scheme led to a significant increase of imports. These results suggest that elimination of export subsidies would not have a particularly harmful effect on the trade balance, and would increase the fiscal position and generate economic efficiency besides
Physical Description:1 Online-Ressource (36 p)
ISBN:1451950675
9781451950670

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