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Assessing the Impact of Marketing Assistance on the Export Performance of Northern Ireland SMEs

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  • Karen Bonner
  • Seamus McGuinness

Abstract

This paper examines the extent to which marketing assistance administered to a group of high performing Northern Ireland SMEs led to improved export revenue growth. Standard OLS models provided no evidence to support the view that marketing grants substantially improved the export performance of assisted firms; however, substantial impacts were detected when treatment models were estimated, indicating that selection into marketing assistance tended to be a non-random event. Marketing assistance was found to be a highly effective policy tool when targeted towards SMEs already active in export markets and/or involved in product innovation. From a methodological standpoint the analysis highlights the potential benefits of using other grant information within the treatment model as a means of uncovering additional important information on firm level characteristics that might otherwise have been missed.

Suggested Citation

  • Karen Bonner & Seamus McGuinness, 2007. "Assessing the Impact of Marketing Assistance on the Export Performance of Northern Ireland SMEs," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 361-379.
    • Handle: RePEc:taf:irapec:v:21:y:2007:i:3:p:361-379
    DOI: 10.1080/02692170701390346
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    References listed on IDEAS

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    1. Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
    2. Stephen Roper & Nola Hewitt‐Dundas, 2001. "Grant Assistance and Small Firm Development in Northern Ireland and the Republic of Ireland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(1), pages 99-117, February.
    3. Seamus McGuinness & Mark Hart, 2004. "Mixing the Grant Cocktail: Towards an Understanding of the Outcomes of Financial Support to Small Firms," Environment and Planning C, , vol. 22(6), pages 841-857, December.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Colin Wren, 2002. "Evaluating the effect of soft business support upon small firm performance," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 334-365, April.
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    Cited by:

    1. Marta Gancarczyk, 2009. "Ocena publicznej i prywatnej formy świadczenia usług dla przedsiębiorców w Małopolsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 91-111.
    2. Greene, Francis, 2012. "Should the focus of publicly provided small business assistance be on start-ups or growth businesses?," Occasional Papers 12/2, Ministry of Economic Development, New Zealand.
    3. Philip McCann & Raquel Ortega-Argilés, 2016. "Smart specialisation, entrepreneurship and SMEs: issues and challenges for a results-oriented EU regional policy," Small Business Economics, Springer, vol. 46(4), pages 537-552, April.

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