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Grant Support and Exporting Activity

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Author Info
Görg, Holger
Henry, Michael
Strobl, Eric

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Abstract

This paper investigates whether government support can act to increase exporting activity. We use a uniquely rich data set on Irish manufacturing plants and employ an empirical strategy that combines a non-parametric matching procedure with a difference-in-differences estimator in order to deal with the potential selection problem inherent in the analysis. Our results suggest that if grants are large enough they can encourage already exporting firms to compete more effectively on the international market. However, there is little evidence that grants encourage non-exporters to start exporting.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6054.

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Date of creation: Jan 2007
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Handle: RePEc:cpr:ceprdp:6054

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Related research
Keywords: difference-in-differences exporting propensity score matching subsidies

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Find related papers by JEL classification:
F2 - International Economics - - International Factor Movements and International Business
H2 - Public Economics - - Taxation, Subsidies, and Revenue
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Barry, F & Bradley, J, 1997. "FDI and Trade : The Irish Host-Country Experience," Papers 97/13, College Dublin, Department of Political Economy-.
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  2. Salvador Barrios & Holger Goerg & Eric Strobl, 2003. "Explaining Firms' Export Behaviour: R&D, Spillovers and the Destination Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 475-496, 09. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Javorcik, Beata Smarzynska & Harding, Torfinn, 2007. "Developing economies and international investors : do investment promotion agencies bring them together ?," Policy Research Working Paper Series 4339, The World Bank. [Downloadable!]
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