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Are export promotion programs efficient for small and medium enterprises?

Author

Listed:
  • Bruno Karoubi

    (Université Paris Est Créteil)

  • Marjorie Lecerf

    (Paris School of Business)

  • Gael Bertrand

    (Essca School of management)

Abstract

Focusing on Small and Medium Enterprises, we evaluate the impact of Export Promotion Programs on the probability of exporting and on the proportion of export related sales (export intensity) by exploiting a unique database of 259 firms. Employing a matching-based methodology and correcting for selection bias, we show that public support causes an increase of 16.27% of export intensity and a 25% increase in the probability of turning to export. We investigate for the first time the interaction between firm characteristics and the nature of public support. Only financial and innovation support increase export intensity while only network related support impacts the probability of exporting. Public support significantly impacts only profit-making firms and firms situated in an internationally exposed environment. This study fills an important gap in the literature by providing evidence that firms in the sector of services do benefit from public support, as opposed to manufacturing firms.

Suggested Citation

  • Bruno Karoubi & Marjorie Lecerf & Gael Bertrand, 2018. "Are export promotion programs efficient for small and medium enterprises?," Economics Bulletin, AccessEcon, vol. 38(1), pages 105-110.
    • Handle: RePEc:ebl:ecbull:eb-17-00784
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    References listed on IDEAS

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    1. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 653-702.
    2. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    3. Hanley, Aoife & Monreal Pérez, Joaquín, 2012. "Are newly exporting firms more innovative? Findings from matched Spanish innovators," Economics Letters, Elsevier, vol. 116(2), pages 217-220.
    4. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
    5. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    6. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    7. repec:idb:brikps:publication-detail,7101.html?id=21146 is not listed on IDEAS
    8. Freixanet, Joan, 2012. "Export promotion programs: Their impact on companies’ internationalization performance and competitiveness," International Business Review, Elsevier, vol. 21(6), pages 1065-1086.
    9. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Stjepan Srhoj & Vanja Vitezic & Joachim Wagner, 2020. "Export boosting policies and firm behaviour: Review of empirical evidence around the world," Working Paper Series in Economics 395, University of Lüneburg, Institute of Economics.
    2. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
    3. Quy T. Vo & Tho V. Nguyen & Tin H. Ho & Hien T. T. Bui & Khoa N. A. Le, 2023. "Supportive Policies of Government as the Drivers of SMEs’ Export Performance: A Study in Ho Chi Minh City, Vietnam," SAGE Open, , vol. 13(4), pages 21582440231, November.

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    More about this item

    Keywords

    Internationalization; Services; Trade; Small and medium-sized enterprises; Export activities; EPP;
    All these keywords.

    JEL classification:

    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • F2 - International Economics - - International Factor Movements and International Business

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