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Entering New Country and Product Markets: Does Export Promotion Help?

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  • Volpe Martincus, Christian
  • Carballo, Jerónimo

Abstract

Entering new export markets is primarily a discrete choice. Even though several empirical papers have used modeling strategies consistent with this fact, no study has examined the effects of public policies aimed at affecting this decision within this setting. In this paper we assess the impact of trade promotion activities on export outcomes using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007 to estimate a binary outcome model which allows for unobserved heterogeneity. We find that trade supporting activities have helped firms reach new destination countries and introduce new differentiated products.

Suggested Citation

  • Volpe Martincus, Christian & Carballo, Jerónimo, 2011. "Entering New Country and Product Markets: Does Export Promotion Help?," IDB Publications (Working Papers) 3172, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:3172
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    Cited by:

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    2. Stjepan Srhoj & Vanja Vitezic & Joachim Wagner, 2020. "Export boosting policies and firm behaviour: Review of empirical evidence around the world," Working Paper Series in Economics 395, University of Lüneburg, Institute of Economics.
    3. Shon Ferguson & Rikard Forslid, 2019. "Sizing Up the Impact of Embassies on Exports," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 278-297, January.
    4. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    5. Francesca Micocci & Armando Rungi, 2021. "Predicting Exporters with Machine Learning," Papers 2107.02512, arXiv.org.
    6. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
    7. Aksel Erbahar, 2019. "Market knowledge: Evidence from importers," The World Economy, Wiley Blackwell, vol. 42(4), pages 1110-1151, April.
    8. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano & Francisco Requena-Silvente, 2015. "Regional export promotion offices and trade margins," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 145-167, February.
    9. Simona Comi & Laura Resmini, 2020. "Are export promotion programs effective in promoting the internalization of SMEs?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 547-581, July.
    10. Valeska V. Geldres-Weiss & Javier A. Carrasco-Roa, 2016. "Impact evaluation of national export promotion programs on export firms using contrast groups," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 77-95.
    11. Jordana, Jacint & Volpe Martincus, Christian & Gallo, Andrés, 2011. "Export Promotion Organizations in Latin America and the Caribbean: An Institutional Portrait," IDB Publications (Working Papers) 3183, Inter-American Development Bank.
    12. Girma, Sourafel & Görg, Holger & Stepanok, Ignat, 2020. "Subsidies, spillovers and exports," Economics Letters, Elsevier, vol. 186(C).
    13. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    14. Srhoj, Stjepan & Walde, Janette, 2020. "Getting ready for EU Single Market: The effect of export-oriented grant schemes on firm performance," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 279-293.
    15. Imtiaz Ahmad, 2015. "The Value of Export Incentives," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(2), pages 99-127, July-Dec.
    16. Jacint Jordana & Christian Volpe Martincus & Andrés Gallo, 2010. "Export Promotion Organizations in Latin America and the Caribbean: An Institutional Portrait," IDB Publications (Working Papers) 39338, Inter-American Development Bank.
    17. Harold Creusen & Arjan Lejour, 2011. "Uncertainty and the export decisions of Dutch firms," FIW Working Paper series 069, FIW.
    18. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
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    More about this item

    Keywords

    Export Promotion; Firm Exports;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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