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Subsidies and exports in Germany: first evidence from enterprise panel data

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  • Girma, Sourafel
  • Görg, Holger
  • Wagner, Joachim

Abstract

We use newly available representative panel data for manufacturing enterprises in West and East Germany to investigate the link between production-related subsidies and exports. We document that only a small fraction of enterprises is subsidized, and that exports and subsidies are positively related. Using a matching approach to investigate the causal effect of subsidies on export activities we find no impact of subsidies on the probability to start exporting, and only weak evidence for an impact of subsidies on the share of exports in total sales in West Germany but no evidence in East Germany.

Suggested Citation

  • Girma, Sourafel & Görg, Holger & Wagner, Joachim, 2009. "Subsidies and exports in Germany: first evidence from enterprise panel data," Kiel Working Papers 1481, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1481
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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, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 653-702.
    2. Johannes Van Biesebroeck & Emily Yu & Shenjie Chen, 2015. "The impact of trade promotion services on Canadian exporter performance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(4), pages 1481-1512, November.
    3. 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.
    4. Vargas Da Cruz,Marcio Jose, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series 7004, The World Bank.
    5. Damodaran, Nikhil, 2016. "Export Subsidies and Interdependence in Euro Union: Beggar Thy Neighbor?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235701, Agricultural and Applied Economics Association.
    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. Afonso, Oscar & Silva, Armando, 2012. "Non-scale endogenous growth effects of subsidies for exporters," Economic Modelling, Elsevier, vol. 29(4), pages 1248-1257.
    8. Petrick Sebastian & Rehdanz Katrin & Wagner Ulrich J., 2011. "Energy Use Patterns in German Industry: Evidence from Plant-level Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(3), pages 379-414, June.
    9. Yanfeng Lou & Yezhuang Tian & Kai Wang, 2020. "The Spillover Effect of US Industrial Subsidies on China’s Exports," Sustainability, MDPI, vol. 12(7), pages 1-12, April.
    10. Okunlola, Olalekan C. & Akinlo, Enisan A., 2021. "The Impact of Export Promotion Schemes on Agricultural Growth in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.

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    More about this item

    Keywords

    Subsidies; export; Germany; enterprise panel data;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other

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