MEASURING THE IMPACT OF MARKET LIBERALIZATION ON EXPORT BEHAVIOR: The Case of Argentina
This article addresses the role distortive macroeconomic policy tools play in affecting export behavior, and explores the impact of their removal as a result of market liberalization. A model is developed which incorporates the effect of export taxes, import tariffs, and export subsidies among other factors on industry exports. The hypotheses derived from the model are then tested using Argentine industry-level trade data for 1990 and 1995, between which the government undertook a dramatic liberalization program. Among the conclusions derived are the positive impact on exports of reductions in not only export but also import taxes.
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