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:: Volume 32, Issue 110 (quarterly journal of economic research and policies 2024) ::
qjerp 2024, 32(110): 6-80 Back to browse issues page
The Impact of Export Subsidies on the Volume and Price of Export: the case of agricultural products using difference-in-differences
Mohammad Vesal * , Morteza Kiani
Sharif University of Technology , m.vesal@sharif.edu
Abstract:   (217 Views)
Export subsidies are one of the most important issues among the various trade policies in developing countries. For more than a century, various effects of export subsidies have been studied in the literature, and different results have been presented. In this paper, we examine the effect of export subsidies on the weight and export price of several agricultural products. In 2015 and 2016, respectively, potatoes and five groups of dairy products were recipients of cash subsidies. In this study, using quarterly microdata on the weight and value of exports for various goods from 2004 to 2021, the effect of subsidies is assessed. By comparing the export changes of subsidized with non-subsidized goods in a difference-in-differences model, the causal effects of the mentioned subsidies are extracted. The results of the research show that the growth of potato export weight has increased due to the subsidy. Also, the export price growth has decreased, with some of the subsidy benefits extending to foreign countries. In the case of dairy products, powdered milk was significantly affected compared to other dairy products. The decrease in export price growth is also seen only in the case of powdered milk. Overall, there are no significant changes in the weight or price of the dairy products. Furthermore, the timing of exports for potatoes and dairy products changed due to the incentive provided by subsidies, with part of the increase in exports during the studied period being compensated by a reduction in exports before and after the studied period.
Keywords: Export Incentives, Trade policy, Agricultural exports
Full-Text [PDF 2742 kb]   (98 Downloads)    
Type of Study: Research | Subject: Special
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Vesal M, Kiani M. The Impact of Export Subsidies on the Volume and Price of Export: the case of agricultural products using difference-in-differences. qjerp 2024; 32 (110) :6-80
URL: http://qjerp.ir/article-1-3593-en.html


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Volume 32, Issue 110 (quarterly journal of economic research and policies 2024) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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