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Do Export Promotion Agencies Increase Exports?

Author

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  • Kazunobu Hayakawa
  • Hyun-Hoon Lee
  • Donghyun Park

Abstract

type="main"> In this paper, we examine the role of export promotion agencies (EPAs) in promoting exports from Japan and Korea. Looking at two home countries enables us to tackle endogeneity issues by controlling for both country-pair time-invariant characteristics and importing-country time-varying characteristics. Our empirical results indicate that EPA has a positive and significant effect on exports even when we control for endogeneity. However, the size of the effect becomes substantially smaller, implying the importance of addressing endogeneity in accurately measuring the impact of EPA on exports. In addition, we find that EPA's (marginal) effects are larger in exporting to low-income trade partners than in exporting to high-income trade partners.

Suggested Citation

  • Kazunobu Hayakawa & Hyun-Hoon Lee & Donghyun Park, 2014. "Do Export Promotion Agencies Increase Exports?," The Developing Economies, Institute of Developing Economies, vol. 52(3), pages 241-261, September.
  • Handle: RePEc:bla:deveco:v:52:y:2014:i:3:p:241-261
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    File URL: http://hdl.handle.net/10.1111/deve.12048
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    References listed on IDEAS

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    1. Hans-Jurgen Engelbrecht & Christopher Pearce, 2007. "The GATT/WTO has promoted trade, but only in capital-intensive commodities!," Applied Economics, Taylor & Francis Journals, vol. 39(12), pages 1573-1581.
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    Cited by:

    1. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR;CES;MSH, vol. 31(88), pages 653-702.
    2. Vargas Da Cruz,Marcio Jose, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series 7004, The World Bank.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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