Export Promotion and Firm Entry into and Survival in Export Markets
Surveys of export promotion agencies suggest that that they tend to focus on helping firms become exporters as a means to stimulate aggregate export growth. But the existing empirical evidence has paid little attention to the role of export promoti...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/08/24927140/export-promotion-firm-entry-survival-export-markets http://hdl.handle.net/10986/22657 |
| Summary: | Surveys of export promotion agencies
suggest that that they tend to focus on helping firms become
exporters as a means to stimulate aggregate export growth.
But the existing empirical evidence has paid little
attention to the role of export promotion agencies in
helping entry into exporting. This paper fills this gap with
a panel of exporting and non-exporting firms from seven
Latin American countries during the period 2006-2010. The
results suggest that export promotion encourages exports
mainly by helping firms enter into and survive in export
markets. The impact on the intensive margin of exporting
firms is not robust. This finding is consistent with export
promotion helping reduce fixed rather than variable costs of
exporting, which is to be expected if export promotion
agencies help correct for market failures associated with
information externalities. |
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