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The Impact of Export Promotion Institutions on Trade: Is It the Intensive or the Extensive Margin?

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  • Christian Volpe Martincus
  • Jerónimo Carballo
  • Andrés Gallo

Abstract

This paper provides evidence on the channels through which export promotion institutions affect bilateral trade using a sample of Latin American and Caribbean countries over the period 1995-2004. We find that these institutions have a larger impact on the extensive margin of exports, especially in the case of trade promotion organizations.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 36765.

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Date of creation: Aug 2010
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Handle: RePEc:idb:brikps:36765

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Related research

Keywords: Trade Facilitation; Public Administration & Policy Making; Export Promotion; Trade Margins;

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References

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  1. Andrew K. Rose, 2005. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," NBER Working Papers 11111, National Bureau of Economic Research, Inc.
  2. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2002. "People's Opium? Religion and Economic Attitudes," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3588, C.E.P.R. Discussion Papers.
  3. Nitsch, Volker, 2007. "Does the G7/G8 promote trade?," Economics Letters, Elsevier, Elsevier, vol. 94(1), pages 136-140, January.
  4. Salvador Gil & Rafael Llorca & José A. Martínez Serrano, 2008. "Measuring the impact of regional export promotion: The Spanish case," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 139-146, 03.
  5. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2006. "Export promotion agencies : what works and what doesn't," Policy Research Working Paper Series 4044, The World Bank.
  6. Andrew K. Rose, 2002. "Do We Really Know that the WTO Increases Trade?," NBER Working Papers 9273, National Bureau of Economic Research, Inc.
  7. James E. Rauch, 1996. "Trade and Search: Social Capital, Sogo Shosha, and Spillovers," NBER Working Papers 5618, National Bureau of Economic Research, Inc.
  8. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  9. Rose, Andrew K, 2003. "Which International Institutions Promote International Trade?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3764, C.E.P.R. Discussion Papers.
  10. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  11. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics, Boston College Department of Economics 593, Boston College Department of Economics.
  12. Charalambos Tsangarides & Pierre Ewenczyk & Michal Hulej & Mahvash Saeed Qureshi, 2009. "Are Africa's Currency Unions Good for Trade?," IMF Staff Papers, Palgrave Macmillan, vol. 56(4), pages 876-918, November.
  13. 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 7012, National Bureau of Economic Research, Inc.
  14. Nitsch, Volker, 2007. "State visits and international trade," Discussion Papers 2007/3, Free University Berlin, School of Business & Economics.
  15. 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.
  16. Peter K. Schott, 2001. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," NBER Working Papers 8244, National Bureau of Economic Research, Inc.
  17. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
  18. Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, Elsevier, vol. 64(1), pages 29-63, October.
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Citations

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Cited by:
  1. Victoria Castillo & David Giuliodori & Alessandro Maffioli & Alejandro Rodríguez & Sofía Rojo & Rodolfo Stucchi, 2014. "El impacto del apoyo al cluster de TIC de la ciudad argentina de Córdoba," IDB Publications 84673, 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 & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information Barriers, Export Promotion Institutions, and the Extensive Margin of Trade," IDB Publications 39358, Inter-American Development Bank.

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