Export Promotion Agencies Revisited

31 Pages Posted: 20 Apr 2016

See all articles by Daniel Lederman

Daniel Lederman

World Bank - Latin America and Caribbean Region

Marcelo Olarreaga

University of Geneva; Centre for Economic Policy Research (CEPR)

Lucy Payton

World Bank - Development Research Group (DECRG)

Date Written: November 1, 2009

Abstract

The number of national export promotion agencies has tripled over the past two decades. Although more countries made them part of their export strategy, studies criticized their efficacy in developing countries. The agencies were retooled, partly in response to these critiques. This paper studies the impact of today's export promotion agencies and their strategies, based on new survey data covering 103 developing and developed countries. The results suggest that on average they have a statistically significant effect on exports. The identification strategies highlight the importance of EPA services for overcoming foreign trade barriers and solving asymmetric information problems associated with exports of heterogeneous goods. There are also strong diminishing returns, suggesting that as far as export promotion agencies are concerned, small is beautiful.

Keywords: Economic Theory & Research, Debt Markets, Trade Policy, Free Trade, Emerging Markets

Suggested Citation

Lederman, Daniel and Olarreaga, Marcelo and Payton, Lucy, Export Promotion Agencies Revisited (November 1, 2009). World Bank Policy Research Working Paper No. 5125, Available at SSRN: https://ssrn.com/abstract=1509192

Daniel Lederman (Contact Author)

World Bank - Latin America and Caribbean Region ( email )

1818 H Street NW
Washington, DC 20433
United States

HOME PAGE: http://sites.google.com/site/danielledermanworldbank/

Marcelo Olarreaga

University of Geneva ( email )

40 Boulevard du Pont-d'Arve
Genève, CH - 1205
Switzerland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Lucy Payton

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States