Export Promotion and Firm Entry into and Survival in Export Markets

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 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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Bibliographic Details
Main Authors: Olarreaga, Marcelo, Lederman, Daniel, Zavala, Lucas
Format: Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2015-08
Subjects:MANUFACTURING, USERS, TECHNOLOGY, EMPLOYMENT, GRANT, MERCHANDISE, COMPETITORS, EXPORT MARKETS, INDIRECT EXPORTS, FIRMS, BUSINESS OPPORTUNITIES, EXPORT PROMOTION PROGRAMS, INTERNATIONAL TRADE, RESULTS, COLLECTION OF INFORMATION, MERCHANDISE EXPORTS, INTEREST, VALUE, INFORMATION, EXPORTS, TRADE FLOWS, EXPORTERS, ENTERPRISE, ENTERPRISE SURVEYS, EXPORT PROMOTION, GOAL, FIRM SIZE, MARKET, EMAIL, OPEN ACCESS, RESULT, INSTITUTIONS, DATA, MARKET ENTRY, SWITCH, BUSINESS, INVESTMENT, EXPORT GROWTH, PARTNERS, TARIFF, FIXED COSTS, CUSTOMS, FINANCIAL SUPPORT, EXPORT, INVESTMENTS, WORLD TRADE, MARKETS, FIRM, MULTINATIONALS, WEB, FIXED COST, REFERENCE, ENTREPRENEURSHIP, INTERNATIONALIZATION, WEB PAGE, SEE, INTERNATIONAL MARKETS, EXPORT MARKET, EXPORT DYNAMICS, SUBSIDIES, USES, CAPABILITIES, GRANTS, CLIENTS,
Online Access:http://documents.worldbank.org/curated/en/2015/08/24927140/export-promotion-firm-entry-survival-export-markets
https://hdl.handle.net/10986/22657
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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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