Measuring the impact of regional export promotion: The Spanish case

Gil, Salvador; Llorca, Rafael; Serrano, José Antonio Martínez

doi:10.1111/j.1435-5957.2007.00155.x

Cited by 60 publications

(58 citation statements)

References 11 publications

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“…But, robust scientific understanding promises to inform choices about from where to draw a control group, what variables to collect in a survey, and what targeting strategy should be adopted in differing circumstances (Abelson, Forest, Eyles, Smith, Martin & Gauvin, 2003;Heckman & Smith, 2004). There is considerable applied research on the promotion of internationalization, notably with respect to exports, for example, Gil, Llorca & Martinez (2008); Girma & Görg (2007); Greenaway & Kneller (2007); Martincus & Carballo (2008). All of these studies provide evidence to support the existence of a form of 'synchronization' between a firm's resources and capabilities and its use of public incentives.…”

Section: Introductionmentioning

confidence: 99%

The missing link between awareness and use in the uptake of pro-internationalization incentives

Torres

Clegg

Varum

2016

International Business Review

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We investigate the process by which firms become participants in official programmes of public support designed to promote outward internationalization. This study builds on previous research that has established the distinct factors associated with firms' awareness and use of public support measures. These earlier studies have also shown that deficiencies within programmes manifest in low participation rates. However, scholars have not extended this reasoning to focus on the underlying processes involved, and have paid little attention to the steps through which firms elect to use public support, and how support operates upon, and within, the firm. In particular, the link between awareness of public incentives towards internationalization and the use of these incentives has been overlooked. General failure to understand this link is a potential source of policy inefficiency, reducing the effectiveness of those public programmes that employ incentives. We pose three research questions to examine the concept of such a link: (1) Do firms select public incentives that compensate for a lack of resources or capabilities in their possession? (2) Do firms react primarily to internal or external exigencies, for example, internal financial constraints or, rather, are they responding to unfolding circumstances, such as the more demanding market conditions experienced on internationalization? And (3) do firms use public support to "externalize" the increased risk to which they are exposed as internationalization proceeds, and thereby protect their external activities and investments from loss? The process that firms go through to apply for any type of public support is normally twostaged. Firms first become aware of incentives and then decide whether or not to use them. This process can be handled empirically using a Heckman Selection Model, which we apply to explore our research questions using survey data collected from a sample of Portuguese firms. We find that the greater are the internal limitations of these firms with respect to resources and capabilities and the more demanding are the conditions in which internationalization takes place, then the greater is the use made of public support. We find that awareness of the availability of support is promoted by firms' in-house resources and capabilities and, at the same time, is positively associated with more demanding conditions of internationalization. The use of public support appears to be associated with the opportunity cost to the firm of public incentives, and with the increased risk inherent with internationalization. These results point to the existence of important sources of inefficiency within the process of application for policy measures, particularly with respect to the link between awareness and use. The use of public support is inversely associated with the opportunity cost to the firm of the resources deployed to apply for public incentives and, for firms with greater resources and capabilities, associated positively with the increased inherent...

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Section: Introductionmentioning

confidence: 99%

The missing link between awareness and use in the uptake of pro-internationalization incentives

Torres

Clegg

Varum

2016

International Business Review

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“…1 Whether these public interventions have been actually effective in correcting such market failures thus allowing for increased trade has been object of an intense debate. Empirical evidence thereon is essentially based on countrycase studies (see, e.g., Álvarez and Crespi, 2000;Gil et al, 2008;Volpe Martincus and Carballo, 2008) and most of the existing literature relies on highly specific geographically and/or sectorally limited samples. In short, cross-country investigations are virtually absent and this raises the question to what extent established findings are applicable to other countries.…”

Section: Introductionmentioning

confidence: 99%

Information barriers, export promotion institutions, and the extensive margin of trade

et al. 2010

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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. [1995][1996][1997][1998][1999][2000][2001][2002][2003][2004]. We find that the presence of offices of export promotion agencies abroad favors an increase in the number of differentiated goods that are exported, whereas a larger number of diplomatic representations in the importer countries seem to be associated with exports of a larger number of homogeneous goods. Terms of use: Documents in

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“…Furthermore, Gil, Llorca, and Serrano (2008) investigated the role of Spanish export promotion offices abroad and the activities of Spain's official missions to other countries. They found that official missions have a positive and significant effect on Spain's foreign trade.…”

Section: Can Sports Promote Exports?mentioning

confidence: 99%

Can Sports Promote Exports? The Role of Soccer Matches in International Trade

Hatzigeorgiou

2016

Glob. Econ. J.

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Sports can help to increase foreign trade and promote global economic integration. Engaging in sports can provide visibility opportunities for countries and may spur the interest of firms as well as consumers in the respective foreign market. Sport could also help to infuse trust into cross-country business relationships. While previous studies have investigated the role of sport events on trade, this study analyzes whether countries can increase trade between them by engaging in sporting activities with each other. We use soccer, being the world's most popular sport, as an example when investigating this potential bilateral sport-trade link. Our empirical strategy builds on the fact that many soccer matches between countries' national teams are the result of a random drawing procedure. Thus, they are a possible source of exogenous variation. Using a gravity model framework, we test the proposed link for approximately 4,800 soccer matches that were played between 209 countries during the period 1995 through 2001. We also analyze the hypothesized underlying impact channel by estimating the impact on trade for goods that are likely to have different elasticity with respect to information and trust friction. The results are indicative of the hypothesis that countries that engage in sporting activities with each other enhance their bilateral trade. These results could have potentially interesting policy implications. Governments may want to consider actively promoting sporting activities together with countries with which they want to enhance their trade.

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Measuring the impact of regional export promotion: The Spanish case

Cited by 60 publications

References 11 publications

The missing link between awareness and use in the uptake of pro-internationalization incentives

The missing link between awareness and use in the uptake of pro-internationalization incentives

Information barriers, export promotion institutions, and the extensive margin of trade

Can Sports Promote Exports? The Role of Soccer Matches in International Trade

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