The Cost of Export Subsidies : Evidence From Costa Rica

Author/Editor:

Alexander W. Hoffmaister

Publication Date:

October 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 91/94

Subject:

Notes:

Also published in Staff Papers, Vol. 39, No. 1, March 1992.

English

Publication Date:

October 1, 1991

ISBN/ISSN:

9781451950670/1018-5941

Stock No:

WPIEA0941991

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

36

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