IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v91y2010i2p257-265.html
   My bibliography  Save this article

Export promotion agencies: Do they work?

Author

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

Abstract

The number of national export promotion agencies (EPAs) has tripled over the last two decades. While more countries made them part of their export strategy, studies criticized their efficacy in developing countries. EPAs were retooled, partly in response to these critiques. This paper studies the impact of today's EPAs and their strategies, based on new survey data covering 103 developing and developed countries. Results suggest that on average they have a statistically significant effect on exports. Our 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 EPAs are concerned, small is beautiful.

Suggested Citation

  • Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2010. "Export promotion agencies: Do they work?," Journal of Development Economics, Elsevier, vol. 91(2), pages 257-265, March.
  • Handle: RePEc:eee:deveco:v:91:y:2010:i:2:p:257-265
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304-3878(09)00093-5
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. repec:spo:wpecon:info:hdl:2441/10146 is not listed on IDEAS
    3. Mayer, Thierry, 2008. "Market Potential and Development," CEPR Discussion Papers 6798, C.E.P.R. Discussion Papers.
    4. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, pages 7-35.
    5. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, pages 603-633.
    6. Masaaki Kotabe & Michael R Czinkota, 1992. "State Government Promotion of Manufacturing Exports: A Gap Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 637-658, December.
    7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 129-137.
    8. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    9. Tenreyro, Silvana, 2007. "On the trade impact of nominal exchange rate volatility," Journal of Development Economics, Elsevier, pages 485-508.
    10. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    11. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, January.
    12. Silvana Tenreyro, 2003. "On the trade impact of nominal exchange rate volatility," Working Papers 03-2, Federal Reserve Bank of Boston.
    13. Panagariya, Arvind, 2000. "Evaluating the case for export subsidies," Policy Research Working Paper Series 2276, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:91:y:2010:i:2:p:257-265. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/devec .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.