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Export promotion activities in developing countries: What kind of trade do they promote?

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  • Christian Volpe Martincus
  • Jer�nimo Carballo

Abstract

Information problems involved in trading differentiated goods are a priori acuter than those associated with trading more homogeneous products. The impact of export promotion activities intending to address these problems can therefore be expected to differ across goods with different degree of differentiation. Empirical evidence on this respect is virtually inexistent. This article aims at filling this gap in the literature by providing estimates of the effect of these activities over firms trading different goods using highly disaggregated export data for the whole population of Costa Rican exporters over the period 2001--2006. We find that trade promotion actions favor an increase of exports along the extensive margin, in particular, in terms of destination countries, in the case of firms that are already selling differentiated goods. However, these actions do not seem to encourage exporter to start exporting these goods. Further, no significant impacts are observed for firms exporting reference-priced and homogeneous goods.

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Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 21 (2012)
Issue (Month): 4 (June)
Pages: 539-578

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Handle: RePEc:taf:jitecd:v:21:y:2012:i:4:p:539-578

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Cited by:
  1. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Beyond The Average Effects: The Distributional Impacts of Export Promotion Programs in Developing Countries," IDB Publications 36718, Inter-American Development Bank.
  2. Jacint Jordana & Christian Volpe Martincus & Andrés Gallo, 2010. "Export Promotion Organizations in Latin America and the Caribbean: An Institutional Portrait," IDB Publications 39338, Inter-American Development Bank.
  3. Christian Volpe Martincus & Jer�nimo Carballo & Pablo M. Garcia, 2012. "Public programmes to promote firms’ exports in developing countries: are there heterogeneous effects by size categories?," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 471-491, February.

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