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Do export promotion agencies increase exports?

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  • Hayakawa, Kazunobu
  • Lee, Hyun-Hoon
  • Park, Donghyun

Abstract

In this paper, we examine the role of export promotion agencies (EPAs) in promoting exports from Japan and Korea. Looking at two home countries enables us to tackle endogeneity issues by controlling for both country-pair time-invariant characteristics and importing country time-varying characteristics. Our empirical results indicate that the coefficients of the EPA dummy are similar in size to those of the FTA dummy. This implies that establishing an EPA office in a country is equivalent to signing an FTA with that country. In addition, we find that EPA’s effects are larger for manufactured products than non-manufactured products. Finally, the EPA effect is larger for low income trade partners than for high income trade partners.

Suggested Citation

  • Hayakawa, Kazunobu & Lee, Hyun-Hoon & Park, Donghyun, 2011. "Do export promotion agencies increase exports?," IDE Discussion Papers 313, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper313
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    References listed on IDEAS

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    Cited by:

    1. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR;CES;MSH, vol. 31(88), pages 653-702.
    2. Srhoj, Stjepan & Vitezic, Vanja & Wagner, Joachim, 2020. "Export boosting policies and firm behaviour: Review of empirical evidence around the world," MPRA Paper 104330, University Library of Munich, Germany.
    3. Vargas Da Cruz,Marcio Jose, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series 7004, The World Bank.
    4. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
    5. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    6. Vargas Da Cruz,Marcio Jose, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series 7004, The World Bank.

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    More about this item

    Keywords

    South Korea; Japan; Imports; Administrative organization; Trade policy; Export promotion; FTA; Gravity model;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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