Export Promotion with Matchmaking and Grants: Evidence from Portuguese Firms

This paper estimates the impact on firms’ goods exports of two key policies implemented by export promotion agencies (EPAs): matchmaking in international markets and financial grants for internationalization. We merge Portuguese rich firm-level data on exports of goods, balance sheets, and income statements, with detailed information on the activity of the EPA between 2012 and 2021. The empirical exercise estimates the causal effect of these policies with a staggered difference-in-difference estimator. We conclude that the support provided to Portuguese firms significantly and positively affected their exports of goods. Financial grants for internationalization led to a significant increase in firms’ goods exports, with a greater effect on micro and small firms and in the sectors of “Wholesale of household goods” and “Manufacture of wearing apparel”. Similarly, matchmaking activities led to a significant increase in exports. In France, the country for which Portuguese companies request the most matching support, the effect is greater for micro and small firms and in the sector of “Manufacturing of other textiles”.