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Export Subsidies in Emerging Markets During the Great Trade Collapse



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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