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Export promotion and firm entry into and survival in export markets

Author

Listed:
  • Lederman,Daniel
  • Olarreaga,Marcelo
  • Zavala,Lucas

Abstract

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.

Suggested Citation

  • Lederman,Daniel & Olarreaga,Marcelo & Zavala,Lucas, 2015. "Export promotion and firm entry into and survival in export markets," Policy Research Working Paper Series 7400, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7400
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    References listed on IDEAS

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    1. Holger Görg & Michael Henry & Eric Strobl, 2008. "Grant Support and Exporting Activity," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 168-174, February.
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    18. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 437-467, September.
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    21. Lederman, Daniel & Rodriguez-Clare, Andres & Yi Xu, Daniel, 2010. "Entrepreneurship and the extensive margin in export growth : a microeconomic accounting of Costa Rica's export growth during 1997-2007," Policy Research Working Paper Series 5376, The World Bank.
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    Cited by:

    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. Güzin Bayar, 2018. "Estimating export equations: a survey of the literature," Empirical Economics, Springer, vol. 54(2), pages 629-672, March.

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    Keywords

    E-Business; Tax Law; Export Competitiveness; Microfinance; Airports and Air Services;
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