Advanced Search
MyIDEAS: Login to save this paper or follow this series

Entering New Country and Product Markets: Does Export Promotion Help?

Contents:

Author Info

  • Christian Volpe Martincus
  • Jerónimo Carballo

Abstract

Entering new export markets is primarily a discrete choice. Even though several empirical papers have used modeling strategies consistent with this fact, no study has examined the effects of public policies aimed at affecting this decision within this setting. In this paper we assess the impact of trade promotion activities on export outcomes using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007 to estimate a binary outcome model which allows for unobserved heterogeneity. We find that trade supporting activities have helped firms reach new destination countries and introduce new differentiated products.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.iadb.org/document.cfm?pubDetail=1&id=35340306
Download Restriction: no

Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 36738.

as in new window
Length:
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:idb:brikps:36738

Contact details of provider:
Postal: 1300 New York Avenue, NW, Washington, DC 20577
Phone: 202-623-1000
Email:
Web page: http://www.iadb.org/publications/
More information through EDIRC

Related research

Keywords: Trade Facilitation; Public Administration & Policy Making; Business Development; Export Promotion; Firm Exports;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. James E. Rauch & Alessandra Casella, 2003. "Overcoming Informational Barriers to International Resource Allocation: Prices and Ties," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 113(484), pages 21-42, January.
  2. Alejandro Artopoulos & Daniel Friel & Juan Carlos Hallak, 2010. "Challenges of Exporting Differentiated Products to Developed Countries: The Case of SME-Dominated Sectors in a Semi-Industrialized Country," Research Department Publications, Inter-American Development Bank, Research Department 4677, Inter-American Development Bank, Research Department.
  3. M. Christopher Auld, 2005. "Causal effect of early initiation on adolescent smoking patterns," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 38(3), pages 709-734, August.
  4. Jonathan Eaton & Samuel Kortum, 2004. "An Anatomy of International Trade: Evidence from French Firms," 2004 Meeting Papers, Society for Economic Dynamics 802, Society for Economic Dynamics.
  5. Richard Blundell & Mónica Costa Dias, 2008. "Alternative Approaches to Evaluation in Empirical Microeconomics," CEF.UP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 0805, Universidade do Porto, Faculdade de Economia do Porto.
  6. Donald S. Kenkel & Joseph V. Terza, 2001. "The effect of physician advice on alcohol consumption: count regression with an endogenous treatment effect," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 16(2), pages 165-184.
  7. Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, Elsevier, vol. 79(1), pages 42-53, September.
  8. John Hudson & Philip Jones, 2003. "International trade in 'quality goods': signalling problems for developing countries," Journal of International Development, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(8), pages 999-1013.
  9. Susan Athey & Guido W. Imbens, 2002. "Identification and Inference in Nonlinear Difference-In-Differences Models," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0280, National Bureau of Economic Research, Inc.
  10. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2006. "Multi-Product Firms and Product Switching," NBER Working Papers, National Bureau of Economic Research, Inc 12293, National Bureau of Economic Research, Inc.
  11. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, American Economic Association, vol. 94(2), pages 150-154, May.
  12. Fröhlich, Markus & Lechner, Michael, 2006. "Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5728, C.E.P.R. Discussion Papers.
  13. Lawless, Martina, 2007. "Firm Export Dynamics and the Geography of Trade," MPRA Paper, University Library of Munich, Germany 10008, University Library of Munich, Germany.
  14. Rauch, J E & Watson, Joel, 1999. "Starting Small in an Unfamiliar Environment," University of California at San Diego, Economics Working Paper Series, Department of Economics, UC San Diego qt4rp145hc, Department of Economics, UC San Diego.
  15. Chiang, Shih-Chen & Masson, Robert T, 1988. "Domestic Industrial Structure and Export Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(2), pages 261-70, May.
  16. James E. Rauch & Vitor Trindade, 1999. "Ethnic Chinese Networks in International Trade," NBER Working Papers, National Bureau of Economic Research, Inc 7189, National Bureau of Economic Research, Inc.
  17. Loungani, Prakash & Mody, Ashoka & Razin, Assaf, 2002. "The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 49(5), pages 526-43, December.
  18. Coelli, Michael B. & Green, David A. & Warburton, William P., 2007. "Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients," Journal of Public Economics, Elsevier, Elsevier, vol. 91(7-8), pages 1369-1398, August.
  19. Jonathan Eaton & Marcela Eslava & Maurice Kugler & James Tybout, 2007. "Export Dynamics in Colombia: Firm-Level Evidence," NBER Working Papers, National Bureau of Economic Research, Inc 13531, National Bureau of Economic Research, Inc.
  20. Aakvik, Arild & Holmas, Tor Helge & Kjerstad, Egil, 2003. "A low-key social insurance reform--effects of multidisciplinary outpatient treatment for back pain patients in Norway," Journal of Health Economics, Elsevier, Elsevier, vol. 22(5), pages 747-762, September.
  21. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, Elsevier, vol. 125(1-2), pages 15-51.
  22. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, StataCorp LP, vol. 2(4), pages 358-377, November.
  23. 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, Elsevier, vol. 92(2), pages 201-214, July.
  24. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components, Boston College Department of Economics S432001, Boston College Department of Economics, revised 12 Feb 2014.
  25. Sourafel Girma & Holger Görg, 2006. "Evaluating the foreign ownership wage premium using a difference-indifferences matching approach," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp165, IIIS.
  26. Marc J. Melitz & Gianmarco I.P. Ottaviano, 2005. "Market Size, Trade, and Productivity," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 201, Centro Studi Luca d\'Agliano, University of Milano.
  27. Schmeiser, Katherine N., 2012. "Learning to export: Export growth and the destination decision of firms," Journal of International Economics, Elsevier, Elsevier, vol. 87(1), pages 89-97.
  28. C Min Han & Vern Terpstra, 1988. "Country-Of-Origin Effects for Uni-National and Bi-National Products," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 19(2), pages 235-255, June.
  29. O'Mara, Charles J., 2002. "International Perspective," Agricultural Outlook Forum 2002, United States Department of Agriculture, Agricultural Outlook Forum 33466, United States Department of Agriculture, Agricultural Outlook Forum.
  30. Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, Elsevier, vol. 29(4-5), pages 471-495, April.
  31. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  32. Michele Snoeck & Carlos Casacuberta & Rosario Domingo & Héctor Pastori & Lucía Pittaluga, 2007. "The Emergence of new Successful Export Activities in Uruguay," Documentos de Trabajo (working papers), Department of Economics - dECON 0908, Department of Economics - dECON.
  33. Andrew B. Bernard & J. Bradford Jensen, 2002. "The Deaths of Manufacturing Plants," NBER Working Papers, National Bureau of Economic Research, Inc 9026, National Bureau of Economic Research, Inc.
  34. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, Elsevier, vol. 48(1), pages 7-35, June.
  35. Sascha O. Becker & Peter Egger, 2007. "Endogenous Product versus Process Innovation and a Firm’s Propensity to Export," CESifo Working Paper Series, CESifo Group Munich 1906, CESifo Group Munich.
  36. Reid, Stan, 1984. "Information acquisition and export entry decisions in small firms," Journal of Business Research, Elsevier, Elsevier, vol. 12(2), pages 141-157, June.
  37. R Portes & H Rey, 2000. "The Determinants Of Cross-Border Equity Flows," CEP Discussion Papers, Centre for Economic Performance, LSE dp0446, Centre for Economic Performance, LSE.
  38. Ahmed, Zafar U. & Mohamed, Osman & Johnson, James P. & Meng, Leong Yee, 2002. "Export promotion programs of Malaysian firms: an international marketing perspective," Journal of Business Research, Elsevier, Elsevier, vol. 55(10), pages 831-843, October.
  39. Andrén , Daniela & Andrén, Thomas, 2002. "Assessing the Employment Effects of Labor Market Training Programs in Sweden," Working Papers in Economics, University of Gothenburg, Department of Economics 70, University of Gothenburg, Department of Economics.
  40. Andrew K. Rose, 2005. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," NBER Working Papers, National Bureau of Economic Research, Inc 11111, National Bureau of Economic Research, Inc.
  41. Jeffrey Smith, 2000. "A Critical Survey of Empirical Methods for Evaluating Active Labor Market Policies," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), Swiss Society of Economics and Statistics (SSES), vol. 136(III), pages 247-268, September.
  42. James E. Rauch, 1996. "Trade and Search: Social Capital, Sogo Shosha, and Spillovers," NBER Working Papers, National Bureau of Economic Research, Inc 5618, National Bureau of Economic Research, Inc.
  43. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2007. "Cultural Biases in Economic Exchange?," Economics Working Papers, European University Institute ECO2007/42, European University Institute.
  44. Graversen, Brian Krogh & Jensen, Peter, 2006. "A Reappraisal of the Virtues of Private Sector Employment Programmes," IZA Discussion Papers, Institute for the Study of Labor (IZA) 2230, Institute for the Study of Labor (IZA).
  45. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, American Economic Association, vol. 87(4), pages 545-64, September.
  46. 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, Elsevier, vol. 76(1), pages 89-106, September.
  47. Hirsch, Seev & Lev, Baruch, 1971. "Sales Stabilization Through Export Diversification," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 53(3), pages 270-77, August.
  48. Jonathan EATON, Samuel KORTUM, Francis KRAMARZ, 2008. "An Anatomy of International Trade : Evidence from French Firms” ~We examine the sales of French manufacturing ?rms in 113 destinations, including Franceitself. Several regularities stand out: (1) th," Working Papers, Centre de Recherche en Economie et Statistique 2008-29, Centre de Recherche en Economie et Statistique.
  49. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
  50. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, National Bureau of Economic Research, Inc, in: Studies in Labor Markets, pages 91-140 National Bureau of Economic Research, Inc.
  51. Smith, Jeffrey & Todd, Petra, 2005. "Rejoinder," Journal of Econometrics, Elsevier, Elsevier, vol. 125(1-2), pages 365-375.
  52. Caliendo, Marco & Kopeinig, Sabine, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," IZA Discussion Papers, Institute for the Study of Labor (IZA) 1588, Institute for the Study of Labor (IZA).
  53. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers, National Bureau of Economic Research, Inc 8881, National Bureau of Economic Research, Inc.
  54. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, Elsevier, vol. 12(2), pages 209-217, February.
  55. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  56. Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers, Norwegian School of Economics and Business Administration- 16/99, Norwegian School of Economics and Business Administration-.
  57. J Bradford Jensen & Andrew B Bernard, 2001. "Why Some Firms Export," Working Papers, Center for Economic Studies, U.S. Census Bureau 01-05, Center for Economic Studies, U.S. Census Bureau.
  58. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers, University of Western Ontario, CIBC Centre for Human Capital and Productivity 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  59. Rocco Huang, 2005. "Distance and Trade: Disentangling unfamiliarity effects and transport cost effects," International Trade, EconWPA 0511010, EconWPA.
  60. Víctor Elías & Fernanda Ruiz Núñez & Ricardo Cossa & David Bravo, 2004. "An Econometric Cost-Benefit Analysis of Argentina's Youth Training Program," Research Department Publications, Inter-American Development Bank, Research Department 3174, Inter-American Development Bank, Research Department.
  61. Ramon Caminal & Xavier Vives, 1996. "Why Market Shares Matter: An Information-Based Theory," RAND Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 27(2), pages 221-239, Summer.
  62. Holger Görg & Michael Henry & Eric Strobl, 2008. "Grant Support and Exporting Activity," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 90(1), pages 168-174, February.
  63. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 66(5), pages 1017-1098, September.
  64. 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, National Bureau of Economic Research, Inc 7012, National Bureau of Economic Research, Inc.
  65. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 60(1), pages 47-57, February.
  66. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  67. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 32(3), pages 441-462.
  68. Paola Sapienza & Luigi Zingales & Luigi Guiso, 2006. "Does Culture Affect Economic Outcomes?," NBER Working Papers, National Bureau of Economic Research, Inc 11999, National Bureau of Economic Research, Inc.
  69. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, Elsevier, vol. 30(1-2), pages 239-267.
  70. Portes, Richard & Rey, Helene & Oh, Yonghyup, 2001. "Information and capital flows: The determinants of transactions in financial assets," European Economic Review, Elsevier, Elsevier, vol. 45(4-6), pages 783-796, May.
  71. Greenaway, David & Sousa, Nuno & Wakelin, Katharine, 2004. "Do domestic firms learn to export from multinationals?," European Journal of Political Economy, Elsevier, Elsevier, vol. 20(4), pages 1027-1043, November.
  72. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(4), pages 605-54, October.
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 in new window

Cited by:
  1. Harold Creusen & Arjan Lejour, 2011. "Uncertainty and the export decisions of Dutch firms," FIW Working Paper series, FIW 069, FIW.
  2. Jacint Jordana & Christian Volpe Martincus & Andrés Gallo, 2010. "Export Promotion Organizations in Latin America and the Caribbean: An Institutional Portrait," IDB Publications, Inter-American Development Bank 39338, Inter-American Development Bank.
  3. Cruz, Marcio, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series, The World Bank 7004, The World Bank.
  4. Pedro Albarran & Raquel Carrasco & Adelheid Holl, 2013. "Domestic transport infrastructure and firms’ export market participation," Small Business Economics, Springer, Springer, vol. 40(4), pages 879-898, May.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:idb:brikps:36738. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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