Export promotion and firm entry into and survival in export markets

Daniel Lederman, Marcelo Olarreaga and Lucas Zavala

No 7400, Policy Research Working Paper Series from The World Bank

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.

Keywords: E-Business; Tax Law; Export Competitiveness; Microfinance; Airports and Air Services (search for similar items in EconPapers)
Date: 2015-08-19
New Economics Papers: this item is included in nep-ger, nep-int and nep-lam
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7400

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