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The Impact of Export Promotion on Export Market Entry

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  • Schminke, Annette
  • Van Biesebroeck, Johannes

Abstract

For small open economies, it is essential that many firms find their way to the export market and most governments provide some form of export promotion assistance. We use detailed firm-level data for Flanders, the largest region in Belgium, to evaluate whether its program raises firms' propensity to start exporting outside the EU single market. We find robust evidence for such an effect by relying on the selection-on-observables assumption which we implement using various estimators. Results remain positive and statistically significant, but are smaller in size, when we use two strategies to mitigate self-selection concerns: (i) focus on sub-samples of firms where endogenous selection into treatment is less likely, and (ii) use firms that receive the weakest form of support as controls for firms receiving more extensive support.

Suggested Citation

  • Schminke, Annette & Van Biesebroeck, Johannes, 2017. "The Impact of Export Promotion on Export Market Entry," CEPR Discussion Papers 11776, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11776
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    Cited by:

    1. Olarreaga, Marcelo & Sperlich, Stefan & Trachsel, Virginie, 2016. "Export Promotion: what works?," CEPR Discussion Papers 11270, C.E.P.R. Discussion Papers.
    2. repec:ebl:ecbull:eb-17-00784 is not listed on IDEAS

    More about this item

    Keywords

    export market entry; International Trade; trade policy;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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