The role of subsidies for exports: Evidence from Portuguese manufacturing firms
AbstractProduction subsidies have not been used by International Business literature to explain firms internationalization processes. We argue subsides may have a role to play in that process. Using a longitudinal database (1996-2003) at the plant level, this paper aims to shed light on the causal nexus between production-related subsidies and exports, in Portugal. We implement a propensity score matching approach in order to evaluate the effects of subsidies on both the probability of domestic firms to begin exporting and on the probability of increasing the export share of already exporters. We find no impact of subsidies on the ability of domestic firms to become exporters; additionally, no effects of subsidies are detected on export shares. Such disappointing results may be explained by the inefficiency in the granting criteria.
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Bibliographic InfoPaper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0035.
Length: 19 pages
Date of creation: Feb 2011
Date of revision: Feb 2011
Subsidies; Exports; Portugal; Matching;
Other versions of this item:
- Armando Silva, 2010. "The role of subsidies for exports: Evidence for Portuguese manufacturing firms," FEP Working Papers 383, Universidade do Porto, Faculdade de Economia do Porto.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-26 (All new papers)
- NEP-CSE-2011-02-26 (Economics of Strategic Management)
- NEP-INT-2011-02-26 (International Trade)
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.:
- Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
- Filipe Silva & Carlos Carreira, 2011.
"Financial Constraints and Exports: An Analysis of Portuguese Firms During the European Monetary Integration,"
Faculdade de Economia, Universidade de Coimbra, issue 34, pages 35-56, December.
- Filipe SIlva & Carlos Carreira, 2011. "Financial constraints and exports: An analysis of Portuguese firms during the European monetary integration," GEMF Working Papers 2011-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Filipe Silva & Carlos Carreira, 2011. "Financial constraints, exports and monetary integration - Financial constraints and exports: An analysis of Portuguese firms during the European monetary integration," GEE Papers 0039, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Jul 2011.
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