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The Impact of Trade Promotion Services on Canadian Exporter Performance

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  • Chen, Shenjie
  • Van Biesebroeck, Johannes
  • Yu, Emily

Abstract

We evaluate the impact of the export promotion program delivered by the Canadian Trade Commissioner Service on various dimensions of export performance. Over the 1999-2006 time period we study, Canadian firms successfully diversified their exports to destinations beyond the United States and smaller firms increased their share of total exports. Both of these achievements are explicit aims of the program, but in order to make causal inferences we rely on various identifying assumptions from the treatment effects literature. The results indicate very robustly that the program had an effect at the intensive margin, boosting the average level of exports to given product-destination markets. Effects at the extensive margins of trade, increasing the number of export destinations or number of products exported, are smaller and more sensitive to the identification assumption. This finding differs from previous studies for several Latin American countries where extensive margin effects were most robust. One reason is that the Canadian program was most effective for larger firms and for firms already active on several export markets.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8597.

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Date of creation: Oct 2011
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Handle: RePEc:cpr:ceprdp:8597

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Keywords: Export Promotion; heterogeneous firms; treatment effect;

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  1. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2010. "Export promotion agencies: Do they work?," Journal of Development Economics, Elsevier, vol. 91(2), pages 257-265, March.
  2. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
  3. Christian Helmers & Natalia Trofimenko, 2010. "Export Subsidies in a Heterogeneous Firms Framework: Evidence from Colombia," CSAE Working Paper Series 2010-26, Centre for the Study of African Economies, University of Oxford.
  4. Christoph Moser & Thorsten Nestmann & Michael Wedow, 2008. "Political Risk and Export Promotion: Evidence from Germany," The World Economy, Wiley Blackwell, vol. 31(6), pages 781-803, 06.
  5. Martin Huber & Michael Lechner & Conny Wunsch, 2010. "How to control for many covariates? Reliable estimators based on the propensity score," University of St. Gallen Department of Economics working paper series 2010 2010-30, Department of Economics, University of St. Gallen.
  6. John Baldwin & Wulong Gu, 2003. "Export-market participation and productivity performance in Canadian manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 634-657, August.
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Cited by:
  1. Marcio Cruz, 2014. "Do Export Promotion Agencies Promote New Exporters?," IDB Publications 85293, Inter-American Development Bank.
  2. Annette SCHMINKE & Johannes VAN BIESEBROECK, 2011. "Using export market performance to evaluate regional preferential policies in China," Center for Economic Studies - Discussion papers ces11.33, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.

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