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Export promotion agencies revisited

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Author Info

  • Lederman, Daniel
  • Olarreaga, Marcelo
  • Payton, Lucy

Abstract

The number of national export promotion agencies has tripled over the past two decades. Although more countries made them part of their export strategy, studies criticized their efficacy in developing countries. The agencies were retooled, partly in response to these critiques. This paper studies the impact of today's export promotion agencies and their strategies, based on new survey data covering 103 developing and developed countries. The results suggest that on average they have a statistically significant effect on exports. The identification strategies highlight the importance of EPA services for overcoming foreign trade barriers and solving asymmetric information problems associated with exports of heterogeneous goods. There are also strong diminishing returns, suggesting that as far as export promotion agencies are concerned, small is beautiful.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5125.

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Date of creation: 01 Nov 2009
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Handle: RePEc:wbk:wbrwps:5125

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Related research

Keywords: Economic Theory&Research; Debt Markets; Trade Policy; Free Trade; Emerging Markets;

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Cited by:
  1. Tibor Besedeš & Byung–Cheol Kim & Volodymyr Lugovskyy, 2011. "Export Growth and Credit Constraints," CeFiG Working Papers, Center for Firms in the Global Economy 16, Center for Firms in the Global Economy, revised 16 Oct 2011.
  2. José Guilherme Reis & Thomas Farole, 2010. "Trade and the Competitiveness Agenda," World Bank Other Operational Studies 10176, The World Bank.

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