Sizing Up the Impact of Embassies on Exports
The purpose of this study is to test for the effects of trade promotion via the foreign service. We develop a Melitz-based model where firms are heterogeneous with respect to productivity and must pay a beachhead cost to enter a foreign market, which can be reduced by government spending on trade promotion. The model predicts that unilateral trade promotion allows medium-sized firms to export. We test this prediction using Swedish firm-level data and information on the opening and closing of Swedish embassies abroad using Norwegian firms as control group. Our results lend support to the predictions of the model, with large and medium-sized firms responding most strongly to the opening of embassies.
|Date of creation:||04 Mar 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Breinlich, Holger & Cuñat, Alejandro, 2010.
"Trade Liberalization and Heterogeneous Firm Models: An Evaluation Using the Canada - US Free Trade Agreement,"
CEPR Discussion Papers
7668, C.E.P.R. Discussion Papers.
- Holger Breinlich & Alejandro Cuñat, 2010. "Trade liberalization and heterogeneous firm models: an evaluation using the Canada - US Free Trade Agreement," LSE Research Online Documents on Economics 28725, London School of Economics and Political Science, LSE Library.
- Holger Breinlich & Alejandro Cuñat, 2010. "Trade Liberalization and Heterogeneous Firm Models: An Evaluation Using the Canada - US Free Trade Agreement," CEP Discussion Papers dp0975, Centre for Economic Performance, LSE.
- Sourafel Girma & Yundan Gong & Holger Gˆrg & Zhihong Yu, 2009.
"Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 111(4), pages 863-891, December.
- Zhihong Yu & Yundan Gong & Sourafel Girma & Holger Görg, 2008. "Can production subsidies explain China's export performance? Evidence from firm level data," Kiel Working Papers 1442, Kiel Institute for the World Economy.
- Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Holger Görg & Michael Henry & Eric Strobl, 2008.
"Grant Support and Exporting Activity,"
The Review of Economics and Statistics,
MIT Press, vol. 90(1), pages 168-174, February.
- Görg, Holger & Henry, Michael & Strobl, Eric, 2008. "Grant support and exporting activity," Open Access Publications from Kiel Institute for the World Economy 4288, Kiel Institute for the World Economy (IfW).
- Görg, Holger & Henry, Michael & Strobl, Eric, 2007. "Grant Support and Exporting Activity," CEPR Discussion Papers 6054, C.E.P.R. Discussion Papers.
- Daniel Trefler, 2001.
"The Long and Short of the Canada-U.S. Free Trade Agreement,"
NBER Working Papers
8293, National Bureau of Economic Research, Inc.
- Daniel Trefler, 2004. "The Long and Short of the Canada-U. S. Free Trade Agreement," American Economic Review, American Economic Association, vol. 94(4), pages 870-895, September.
- Daniel Trefler, 2006. "The Long and Short of the Canada-U.S. Free Trade Agreement," STICERD - Economics of Industry Papers 41, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Daniel Trefler, 2006. "The long and short of the Canada-U.S. free trade agreement," LSE Research Online Documents on Economics 6721, London School of Economics and Political Science, LSE Library.
- James Levinsohn & Amil Petrin, 2003.
"Estimating Production Functions Using Inputs to Control for Unobservables,"
Review of Economic Studies,
Wiley Blackwell, vol. 70(2), pages 317-341, 04.
- James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
- Akerman, Anders & Forslid, Rikard, 2007. "Country Size, Productivity and Trade Share Convergence: An Analysis of Heterogenous Firms and Country Size Dependent Beachhead Costs," CEPR Discussion Papers 6545, C.E.P.R. Discussion Papers.
- Persson, Maria, 2010.
"Trade Facilitation and the Extensive Margin,"
Working Paper Series
828, Research Institute of Industrial Economics.
- Maria Persson, 2013. "Trade facilitation and the extensive margin," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(5), pages 658-693, August.
- Christian Volpe Martincus & Jer�nimo Carballo & Pablo M. Garcia, 2012.
"Public programmes to promote firms’ exports in developing countries: are there heterogeneous effects by size categories?,"
Taylor & Francis Journals, vol. 44(4), pages 471-491, February.
- Christian Volpe Martincus & Jerónimo Carballo & Pablo M. García, 2010. "Public Programs to Promote Firms' Exports in Developing Countries: Are There Heterogeneous Effects by Size Categories?," IDB Publications (Working Papers) 36764, Inter-American Development Bank.
When requesting a correction, please mention this item's handle: RePEc:hhs:iuiwop:1012. 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: (Elisabeth Gustafsson)
If references are entirely missing, you can add them using this form.