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Export Promotion: what works?

Author

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  • Olarreaga, Marcelo
  • Sperlich, Stefan
  • Trachsel, Virginie
Abstract
A recent literature has argued that resources spent on export promotion help export growth (Van Biesebroeck, Konings and Volpe, 2016). In this paper we build on this work and examine the heterogeneity in returns across countries to disentangle which are the characteristics of Trade Promotion Organizations (TPOs) that are more likely to generate higher returns. Results suggest that on average a one percent increase in export promotion budgets increases exports by 0.074 percent, con rming results in the earlier literature. Our results also suggest that these export gains translate into very large GDP per capita gains. Indeed, a one percent increase in export budgets generates a 0.065 percent increase in GDP per capita. More interestingly, our results show which TPO characteristics generate large increases in exports, and which generate large gains in terms of GDP per capita.

Suggested Citation

  • Olarreaga, Marcelo & Sperlich, Stefan & Trachsel, Virginie, 2016. "Export Promotion: what works?," CEPR Discussion Papers 11270, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11270
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    References listed on IDEAS

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    Cited by:

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    3. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
    4. Jaime de Melo, 2020. "A Dashboard for Trade Policy Diagnostics," Working Papers hal-03004368, HAL.
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    6. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    7. Allan Sørensen, 2020. "Export promotion and intra‐industry reallocations," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 303-319, May.

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    More about this item

    Keywords

    Export promotion; Impact evaluation;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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