Export subsidies in a heterogeneous firms framework

Arbeitspapier

We evaluate the impact of firm-specific export subsidies on exports in Colombia. Using a two-stage Heckman selection procedure, we obtain firm-specific predicted subsidy amounts that can be explained by the characteristics that determine the firms' eligibility for the government support and its amount. Drawing on the accounts of the discretionary allocation of subsidies in developing countries, we regard the discrepancy between the predicted and the observed subsidy amounts as a proxy for the firm's ties to government officials. Controlling for observable and unobservable firm characteristics and persistence in exports, we find that although, in general, subsidies exhibit positive impact on export volumes, this impact is diminishing in subsidy size and in the degree of firm's connectedness to government officials.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1476

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Trade Policy; International Trade Organizations ; Firm Objectives, Organization, and Behavior: General ; Taxation, Subsidies, and Revenue: General
• Subject: Export subsidies ; exports ; Heckman selection ; System GMM ; Exportsubvention ; Wirtschaftspolitische Wirkungsanalyse ; Export ; Mikroökonometrie ; Schätzung ; Momentenmethode ; Schätzung ; Kolumbien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Helmers, Christian ; Trofimenko, Natalia
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/24872
• Last update: 10.03.2025, 11:44 AM CET