IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v18y2011i2p127-132.html
   My bibliography  Save this article

The impact of export promotion institutions on trade: is it the intensive or the extensive margin?

Author

Listed:
  • Christian Volpe Martincus
  • Jeronimo Carballo
  • Andres Gallo

Abstract

This article provides evidence on the channels through which export promotion institutions affect bilateral trade using a sample of Latin American and Caribbean countries over the period 1995 to 2004. We find that these institutions have a larger impact on the extensive margin of exports, especially in the case of trade promotion organizations.

Suggested Citation

  • Christian Volpe Martincus & Jeronimo Carballo & Andres Gallo, 2011. "The impact of export promotion institutions on trade: is it the intensive or the extensive margin?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(2), pages 127-132.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:2:p:127-132
    DOI: 10.1080/13504850903508283
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850903508283&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504850903508283?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Nitsch, Volker, 2007. "Does the G7/G8 promote trade?," Economics Letters, Elsevier, vol. 94(1), pages 136-140, January.
    2. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    3. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, January.
    4. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2003. "People's opium? Religion and economic attitudes," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 225-282, January.
    5. Volker Nitsch, 2007. "State Visits and International Trade," The World Economy, Wiley Blackwell, vol. 30(12), pages 1797-1816, December.
    6. Andrew Rose, 2005. "Which International Institutions Promote International Trade?," Review of International Economics, Wiley Blackwell, vol. 13(4), pages 682-698, September.
    7. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    8. Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, vol. 64(1), pages 29-63, October.
    9. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
    10. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    11. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2006. "Export promotion agencies : what works and what doesn't," Policy Research Working Paper Series 4044, The World Bank.
    12. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    13. Peter K. Schott, 2003. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," American Economic Review, American Economic Association, vol. 93(3), pages 686-708, June.
    14. Salvador Gil & Rafael Llorca & José A. Martínez Serrano, 2008. "Measuring the impact of regional export promotion: The Spanish case," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 139-146, March.
    15. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    16. Subramanian Rangan & Robert Z. Lawrence, 1999. "Search and Deliberation in International Exchange: Learning from Multinational Trade About Lags, Distance Effects, and Home Bias," NBER Working Papers 7012, National Bureau of Economic Research, Inc.
    17. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    18. Mr. Michal Hulej & Mr. Charalambos G Tsangarides & Mr. Pierre Ewenczyk, 2006. "Stylized Facts on Bilateral Trade and Currency Unions: Implications for Africa," IMF Working Papers 2006/031, International Monetary Fund.
    19. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    20. Scholl, Almuth & Uhlig, Harald, 2008. "New evidence on the puzzles: Results from agnostic identification on monetary policy and exchange rates," Journal of International Economics, Elsevier, vol. 76(1), pages 1-13, September.
    21. James E. Rauch, 1996. "Trade and Search: Social Capital, Sogo Shosha, and Spillovers," NBER Working Papers 5618, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hans Lööf & Ingrid Viklund‐Ros, 2020. "Board of directors and export spillovers: What is the impact on extensive margins of trade?," The World Economy, Wiley Blackwell, vol. 43(5), pages 1188-1215, May.
    2. Robin Visser, 2018. "Diplomatic representation, service exports and goods exports," Economics Bulletin, AccessEcon, vol. 38(2), pages 863-869.
    3. Christian Volpe Martincus & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information barriers, export promotion institutions, and the extensive margin of trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 91-111, April.
    4. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.
    5. Manuel Barron & Willy Sacio, 2018. "Within-firm spillovers of export promotion agencies," Working Papers 138, Peruvian Economic Association.
    6. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano & Francisco Requena-Silvente, 2015. "Regional export promotion offices and trade margins," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 145-167, February.
    7. Jordana, Jacint & Volpe Martincus, Christian & Gallo, Andrés, 2010. "Export Promotion Organizations in Latin America and the Caribbean: An Institutional Portrait," IDB Publications (Working Papers) 3183, Inter-American Development Bank.
    8. Boneu, Franco & Giuliodori, David & Maffioli, Alessandro & Rodríguez, Alejandro & Stucchi, Rodolfo, 2014. "The spillover effects of the ICT cluster support in Córdoba," MPRA Paper 60307, University Library of Munich, Germany.
    9. Srhoj, Stjepan & Walde, Janette, 2020. "Getting ready for EU Single Market: The effect of export-oriented grant schemes on firm performance," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 279-293.
    10. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    11. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
    12. Ahmed Boutorat & Loe Franssen, 2023. "Economic missions and firm internationalization: evidence from the Netherlands," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 787-826, August.
    13. Ryo Makioka, 2021. "The impact of export promotion with matchmaking on exports and service outsourcing," Review of International Economics, Wiley Blackwell, vol. 29(5), pages 1418-1450, November.
    14. Biswas, Trina & Kennedy, P. Lynn, 2016. "Corruption and Agricultural Trade," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235326, Agricultural and Applied Economics Association.
    15. Victoria Castillo & David Giuliodori & Alessandro Maffioli & Alejandro Rodríguez & Sofía Rojo & Rodolfo Stucchi, 2014. "El impacto del apoyo al cluster de TIC de la ciudad argentina de Córdoba," IDB Publications (Working Papers) 84673, Inter-American Development Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Volpe Martincus & Jeronimo Carballo & Andres Gallo, 2011. "The impact of export promotion institutions on trade: is it the intensive or the extensive margin?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(2), pages 127-132.
    2. Christian Volpe Martincus & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information barriers, export promotion institutions, and the extensive margin of trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 91-111, April.
    3. Christian Volpe Martincus & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information Barriers, Export Promotion Institutions, and the Extensive Margin of Trade," IDB Publications (Working Papers) 39358, Inter-American Development Bank.
    4. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    5. Kazunobu Hayakawa & Hyun-Hoon Lee & Donghyun Park, 2014. "Do Export Promotion Agencies Increase Exports?," The Developing Economies, Institute of Developing Economies, vol. 52(3), pages 241-261, September.
    6. Salvador Gil-Pareja, 2011. "Do nonreciprocal preference regimes increase exports?," ERSA conference papers ersa11p1561, European Regional Science Association.
    7. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Is Export Promotion Effective in Developing Countries? Firm-Level Evidence on the Intensive and Extensive Margins of Exports," IDB Publications (Working Papers) 36763, Inter-American Development Bank.
    8. Jong-Wha Lee & Ju Hyun Pyun, 2016. "Does Trade Integration Contribute to Peace?," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 327-344, February.
    9. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
    10. Mahmut Yasar & David Lisner & Roderick Rejesus, 2012. "Bilateral trade impacts of temporary foreign visitor policy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 501-521, September.
    11. Jong-Wha Lee & Ju Hyun Pyun, 2016. "Does Trade Integration Contribute to Peace?," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 327-344, February.
    12. Gil-Pareja, Salvador & Llorca-Vivero, Rafael & Martínez-Serrano, José Antonio, 2014. "Do nonreciprocal preferential trade agreements increase beneficiaries' exports?," Journal of Development Economics, Elsevier, vol. 107(C), pages 291-304.
    13. Hayakawa, Kazunobu, 2013. "How serious is the omission of bilateral tariff rates in gravity?," Journal of the Japanese and International Economies, Elsevier, vol. 27(C), pages 81-94.
    14. Dutt, Pushan, 2020. "The WTO is not passé," European Economic Review, Elsevier, vol. 128(C).
    15. Omar S. Dahi & Firat Demir, 2013. "Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with?," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4754-4772, December.
    16. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    17. Do, Quy-Toan & Levchenko, Andrei A. & Raddatz, Claudio, 2016. "Comparative advantage, international trade, and fertility," Journal of Development Economics, Elsevier, vol. 119(C), pages 48-66.
    18. Cipollina, Maria & Salvatici, Luca, 2007. "EU and developing countries: an analysis of preferential margins on agricultural trade flows," Working Papers 7219, TRADEAG - Agricultural Trade Agreements.
    19. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    20. Anderson, James E. & Yotov, Yoto V., 2016. "Terms of trade and global efficiency effects of free trade agreements, 1990–2002," Journal of International Economics, Elsevier, vol. 99(C), pages 279-298.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:18:y:2011:i:2:p:127-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.