The impact of trade promotion services on Canadian exporter performance

From 1999 to 2006, Canadian firms successfully diversified their exports to destinations beyond the United States while smaller firms increased their share in total exports. Both are explicit aims of the Trade Commissioner Service export promotion program. Exploiting assumptions from the treatment effects literature, we identify a causal, export-boosting effect. In contrast with existing evidence for Latin American countries, the intensive margin effecthigher exports to existing product-destination marketsdominates. Effects at the extensive marginexporting more products to more destinationsare smaller and sensitive to identification assumptions. We interpret this evidence in light of trade models with heterogeneous firms.