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The Impact of Trade Promotion Organizations on Exports: Evidence from the COVID-19 Pandemic

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  • Choi, Yewon
  • Fernandes, Ana Margarida
  • Grover, Arti
  • Iacovone, Leonardo
  • Olarreaga, Marcelo

Abstract

This paper examines the impact of trade promotion organizations on exports during the COVID-19 pandemic using a World Bank survey. The results suggest that increased trade promotion organization budgets significantly boosted exports during downturns but had no effect during the recovery phase. Interestingly, e-commerce programs adopted by trade promotion organizations negatively affected exports during downturns as they diverted resources away from productive support, especially for sectors not intensive in online trade. These findings suggest that countercyclical trade promotion organizations budgets may enhance trade resilience during similar global shocks.

Suggested Citation

  • Choi, Yewon & Fernandes, Ana Margarida & Grover, Arti & Iacovone, Leonardo & Olarreaga, Marcelo, 2025. "The Impact of Trade Promotion Organizations on Exports: Evidence from the COVID-19 Pandemic," Policy Research Working Paper Series 11182, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11182
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    References listed on IDEAS

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    1. Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2016. "Exporter behavior, country size and stage of development: Evidence from the exporter dynamics database," Journal of Development Economics, Elsevier, vol. 119(C), pages 121-137.
    2. R Maria del Rio-Chanona & Penny Mealy & Anton Pichler & François Lafond & J Doyne Farmer, 2020. "Supply and demand shocks in the COVID-19 pandemic: an industry and occupation perspective," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(Supplemen), pages 94-137.
    3. 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.
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