The impact of restrictions to export on production : a synthetic controls approach

Abstract

This paper uses quantitative restrictions to exports implemented in Bolivia in order to investigate the impact of export restrictions on the volume of production. We apply a synthetic controls approach and show that production of cattle beef fell remarkably when quantitative restrictions are imposed. Importantly, we show that export restrictions have a negative impact not only on total production, but also on production for local market. The fact that export controls can actually harm production for local market bears important implications for the design of policies in the future.