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The impact of trade promotion services on Canadian exporter performance

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  • Jo VAN BIESEBROECK
  • Emily YU
  • Shenjie CHEN

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 Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces11.21.

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Date of creation: Sep 2011
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Handle: RePEc:ete:ceswps:ces11.21

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  1. Nestmann, Thorsten & Moser, Christoph & Wedow, Michael, 2006. "Political risk and export promotion: Evidence from Germany," Research Notes 23, Deutsche Bank Research.
  2. Christian Helmers & Natalia Trofimenko, 2010. "Export Subsidies in a Heterogeneous Firms Framework: Evidence from Colombia," Economics Series Working Papers CSAE WPS/2010-26, University of Oxford, Department of Economics.
  3. 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.
  4. Ann Harrison & Andrés Rodríguez-Clare, 2009. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," NBER Working Papers 15261, National Bureau of Economic Research, Inc.
  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. Schminke, Annette & Van Biesebroeck, Johannes, 2011. "Using Export Market Performance to Evaluate Regional Preferential Policies in China," CEPR Discussion Papers 8696, C.E.P.R. Discussion Papers.
  2. Marcio Cruz, 2014. "Do Export Promotion Agencies Promote New Exporters?," IDB Publications 85293, Inter-American Development Bank.

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