Impact of the Chilean Supplier Development Program on the Performance of SME and Their Large Firm Customers

20 Pages Posted: 25 May 2011

See all articles by Irani Arraiz

Irani Arraiz

InterAmerican Development Bank

Rodolfo Stucchi

InterAmerican Development Bank

Francisca Henriquez

affiliation not provided to SSRN

Date Written: May 1, 2011

Abstract

This paper evaluates the impact of the Chilean Supplier Development Program, aimed at improving and stabilizing the commercial linkages between small and medium-sized suppliers and their large firm customers, during the period 2003-2008. Applying propensity score matching and difference-in-differences, we find that both groups of firms benefited from the coordination efforts. The program increased sales, employment, and the sustainability of small and medium-sized suppliers. It also increased the sales of large firms and raised their ability of becoming exporters. We also find that the timing of the effect is different for suppliers and large firms. While the effect on suppliers appeared one year after the firms enrolled in the program, the effect on large firms took two years to appear.

Keywords: Supplier Development Program, SME Policy, Impact Evaluation, Chile, PDP

JEL Classification: D04, D78, L38

Suggested Citation

Arraiz, Irani and Stucchi, Rodolfo and Henriquez, Francisca, Impact of the Chilean Supplier Development Program on the Performance of SME and Their Large Firm Customers (May 1, 2011). Available at SSRN: https://ssrn.com/abstract=1847123 or http://dx.doi.org/10.2139/ssrn.1847123

Irani Arraiz (Contact Author)

InterAmerican Development Bank ( email )

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Rodolfo Stucchi

InterAmerican Development Bank ( email )

1300 New York Avenue NW
Washington, DC 20577
United States
+1 (202) 5237619 (Phone)

HOME PAGE: http://https://www.sites.google.com/site/rodolfostucchi/

Francisca Henriquez

affiliation not provided to SSRN ( email )

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