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Are the Benefits of Export Support Durable? Evidence from Tunisia

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  • Olivier Cadot
  • Ana M. Fernandes
  • Julien Gourdon
  • Aaditya Mattoo

Abstract

This paper evaluates the effects of the FAMEX export promotion program in Tunisia on the performance of beneficiary firms. While much of the literature assesses only the short term impact of such programs, we consider also the longer term impact. Propensity-score matching difference-in-difference and weighted least squares estimates suggest that beneficiaries initially see faster export growth and greater diversification across destination markets and products. However, three years after the intervention, neither the growth rates nor the export levels of beneficiaries are significantly different from those of non-beneficiary firms. Exports of beneficiaries remain more diversified, but the diversification does not translate into lower volatility of exports. There is also no evidence that the program produced spillover benefits for non-beneficiary firms. Taken together, these results suggest that export promotion programs may in some cases induce firms to diversify without creating other durable benefits.

Suggested Citation

  • Olivier Cadot & Ana M. Fernandes & Julien Gourdon & Aaditya Mattoo, 2012. "Are the Benefits of Export Support Durable? Evidence from Tunisia," Working Papers 2012-30, CEPII research center.
    • Handle: RePEc:cii:cepidt:2012-30
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    More about this item

    Keywords

    Export promotion; firms; export margins; Tunisia; impact evaluation; propensity-score matching; matching grant;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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