Date Thesis Awarded
Honors Thesis -- Open Access
Bachelors of Arts (BA)
This paper measures the impact of a widespread trade subsidy program on the exporting sectors in which Chile faces comparative disadvantages (i.e., small exporting sectors). More specifically, I analyze the effect of export subsidies on the changes in exports experienced by these sectors in Chile between 2002 and 2013. My regression analysis utilizes data on Chilean exports from Chile’s National Customs Service. It also uses information on the eligibility requirements for receiving the aforementioned subsidies — which are worth three percent of the value of an export — from the Chilean government. This information is provided by annual legal documents that are sourced from Chile’s Library of Congress. My results suggest that the low values of subsidies provided by this program in Chile are not large enough to allow small exporting sectors to overcome the comparative disadvantages faced by Chile. Overall, the results of this study imply that the impact of a widespread subsidy program on an exporting sector depends on both subsidy size and whether the country has a comparative disadvantage in that sector.
Keywords: export subsidy, ‘simplified’ drawback program, small exporting sector, comparative disadvantage
Damelin, Leah, "The Effect of Subsidies on Small Exporting Sectors in Chile" (2022). Undergraduate Honors Theses. William & Mary. Paper 1768.
Creative Commons License
This work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 License.