Export promotion agencies: Do they work?

Lederman, Daniel; Olarreaga, Marcelo; Payton, Lucy

doi:10.1016/j.jdeveco.2009.09.003

Cited by 210 publications

(240 citation statements)

References 17 publications

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“…23 None of the existing explanations for multilateral trade cooperation-based on terms of trade effects (Bagwell and Staiger 1999), commitment motives (Maggi and Rodriguez-Clare 2007), production relocation externalities (Ossa 2009), strategic uncertainty (Calvo-Pardo 2009), or profit-shifting motives (Mrazova 2010)-accounts for the sequentiality of firms' export strategies. 24 Lederman, Olarreaga and Payton (2010) provide suggestive evidence that this may be the case.…”

Section: Resultsmentioning

confidence: 92%

Sequential exporting

Albornoz¹,

Calvo‐Pardo²,

Corcos³

et al. 2012

Journal of International Economics

372

340

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Many new exporters give up exporting very shortly, despite substantial entry costs; others shoot up foreign sales and expand to new destinations. We develop a model based on experimentation to rationalize these and other dynamic patterns of exporting firms. We posit that individual export profitability, while initially uncertain, is positively correlated over time and across destinations. This leads to "sequential exporting," where the possibility of profitable expansion at the intensive and extensive margins makes initial entry costs worthwhile despite high failure rates. Firm-level evidence from Argentina's customs, which would be difficult to reconcile with existing models, strongly supports this mechanism. Sequential exporting also has important and novel policy implications: a reduction in trade barriers has delayed effects, while also promoting entry in third markets. This trade externality poses challenges for the quantification of the effects of trade liberalization programs and implies that the consequences of international trade agreements are significantly richer than traditional models suggest. JEL Codes: F10; D21; F13 Keywords: Export dynamics, experimentation, uncertainty, learning, trade liberalization * We thank Costas Arkolakis, David Atkin, Sami Berlinski, Jordi Blanes-i-Vidal, John Bluedorn, Holger Breinlich, Svetlana Demidova, Nic de Roos, Peter Egger, Robert Elliott, Daniel Ferreira, Rodrigo Fuentes, Martin Gervais, Juan Carlos Hallak, James Harrigan, Beata Javorcik, Marc-Andreas Muendler, Peter Neary, Brent Neiman, Dimitra Petropoulou, Horst Raff, Steve Redding, Frédéric Robert-Nicoud, Mark Roberts, Ina Simonovska, Thierry Verdier, Zhihong Yu, and seminar participants at various institutions and conferences for valuable comments and suggestions. We also thank the support of the Chair Jacquemin of the Université Catholique de Louvain in choosing this paper for its annual award at the 2009 European Trade Study Group Meeting. We gratefully acknowledge financial support from the British Academy and the ESRC.

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Section: Resultsmentioning

confidence: 92%

Sequential exporting

Albornoz¹,

Calvo‐Pardo²,

Corcos³

et al. 2012

Journal of International Economics

372

340

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“…This paper contributes to the flourishing literature that evaluates the effectiveness of export promotion policies (Bernard and Jensen, 2004;Volpe Martincus and Carballo, 2008;Görg et al, 2008;Lederman et al, 2010;Cadot et al, 2015;van Biesebroeck et al, 2015). 4 In contrast to other instruments of commercial policy such as tariffs or quotas, export subsidies are inherently difficult to define and identify, (WTO, 2006 4 Closely related to this literature and our paper, Girma et al (2009) and Helmers and Trofimenko (2015) study the effect of broadly defined production subsidies recorded in the manufacturing surveys of China and Colombia respectively, on export outcomes.…”

Section: Figure 1: Nepal's Total Exports and Imports Of Goods And Sermentioning

confidence: 99%

All These Worlds Are Yours, Except India: The Effectiveness of Export Subsidies in Nepal

Defever

Reyes²,

Riaño

et al. 2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper evaluates the effect on firm-level export outcomes of the Cash Incentive Scheme for Exports program provided by the Government of Nepal. The analysis utilizes customs-level data for 2011-14, combined with information on the subsidy payments made to individual firms provided by the Central Bank of Nepal. The Cash Incentive Scheme for Exports cash subsidy is available to firms exporting a select group of products, and requires firms to export to countries other than India. Overall, the subsidy has not produced a significant impact on firm-level export values, prices, quantities, or their growth rates. However, the study finds a small positive effect on the number of eligible products exported to countries other than India and the number of destination markets reached among firms that receive the subsidy. These results are consistent with the fact that the subsidy was granted primarily to large exporters that were already shipping eligible products to countries other than India. The findings suggest that although the cash subsidy has not produced a significant increase in exports, it has achieved a positive impact on export diversification for firms that were already satisfying the scheme's eligibility criteria. JEL-Codes: F120, F130, O470. Terms of use: Documents in

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“…The rationale for such public support can be grouped into two categories: rationales based on societal desires and rationales based on barriers faced by private ventures (Norrman, 2008). The economic justification for governments to promote export is based on the theories of externalities and market failures associated with export (Lederman et al, 2010). In export, spillovers exist regarding the collection of foreign market information related to consumer preferences, laws, regulations, and business opportunities.…”

Section: Export Promotionmentioning

confidence: 99%

“…From a government's perspective, focus has been on support mechanisms, structures, delivery channels and program effectiveness (e.g. Lederman et al, 2010;Leonidou et al, 2011). From the firm's perspective, research has investigated how firms access and utilise export promotion initiatives in export (e.g Kumcu et al, 1995).…”

Section: Introduction This Chapter Elaborates the Problem At The Centmentioning

confidence: 99%

Promotion of Environmental Technology Export : Governmental Initiatives and Business Concepts

Kanda¹

2014

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This qualitative and quantitative study examines governmental initiatives and business concepts as approaches to promote the export of environmental technology. Here, environmental technology refers to technologies (products, services, organizational models, and large-scaled technical systems) whose development and use actually provide or intends to provide a better environmental performance than their relevant alternatives from a life cycle perspective. Using literature reviews, surveys and interviews, this thesis collects primary and secondary data from national government level, private Swedish environmental technology firms and Swedish municipality-owned firms. Three main research questions guide this thesis. These questions address how different governments in selected countries promote the export of environmental technologies and how private Swedish environmental technology firms perceive the effectiveness of governmental export promotion initiatives in realising export. In a complementary view, the thesis focuses on fundamental components of business concepts for export of environmental technologies by municipality-owned companies. These three units of analysis (i.e. – governmental initiatives, private companies and municipality-owned companies) are influenced by the characteristics of the environmental technology sector in Sweden. The main results from the study suggest three conclusions. First, governmental initiatives intended to promote the export of environmental technology are largely similar to approaches that intend to promote the export of “conventional” technology. These initiatives can be categorised as: financial aid programs, information programs, education and training programs, and trade mobility related programs. When it comes to perceived effectiveness of governmental promotion initiatives by private firms, results indicate that firms that accessed more than one type of governmental promotion, particularly those including financial support, perceived governmental promotion as contributing to realising export. For municipality-owned companies exporting environmental technology, the thesis proposes seven fundamental components of a business concept as: market (including regulation), finance, resources, activities, partnership (private-public partnership), ownership and responsibility, and legitimacy. Among these factors, regulation, public-private partnership, and legitimacy are particular to environmental technologies. These results suggest a dynamic balance between generic and tailored export promotion initiatives for environmental technology exporters, with much attention to program implementation as is given to program content formulation. The components proposed for municipality export opens up a potentially new research trajectory on environmentally conscious design that considers technological as well as non-technological changes based on large-scaled environmental technology systems for system-wide environmental improvements

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Export promotion agencies: Do they work?

Cited by 210 publications

References 17 publications

Sequential exporting

Sequential exporting

All These Worlds Are Yours, Except India: The Effectiveness of Export Subsidies in Nepal

Promotion of Environmental Technology Export : Governmental Initiatives and Business Concepts

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