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Export Subsidies in Emerging Markets During the Great Trade Collapse

2020

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We estimate the impact of an export subsidy program in Peru during the Great Trade Collapse. Historically, Peruvian firms have accessed a five percent subsidy on the FOB value of exports. The rate increased up to eight percent during the crisis. For the years 2009-2010, we find that supported firms experienced a lower decline in export values and a lower exit probability of product-destination markets.

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