Are the Benefits of Export Support Durable? Evidence from Tunisia

45 Pages Posted: 20 Apr 2016

See all articles by Olivier Cadot

Olivier Cadot

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne); Centre for Economic Policy Research (CEPR); World Bank

Ana M. Fernandes

World Bank - International Trade Division; World Bank

Julien Gourdon

OECD

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

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Date Written: December 1, 2012

Abstract

This paper evaluates the effects of the FAMEX export promotion program in Tunisia on the performance of beneficiary firms. While much of the literature assesses only the short-term impact of such programs, the paper considers also the longer-term impact. Propensity-score matching, difference-in-difference, and weighted least squares estimates suggest that beneficiaries initially see faster export growth and greater diversification across destination markets and products. However, three years after the intervention, the growth rates and the export levels of beneficiaries are not significantly different from those of non-beneficiary firms. Exports of beneficiaries do remain more diversified, but the diversification does not translate into lower volatility of exports. The authors also did not find evidence that the program produced spillover benefits for non-beneficiary firms. However, the results on the longer-term impact of export promotion must be interpreted cautiously because the later years of the sample period saw a collapse in world trade, which may not have affected all firms equally.

Keywords: Microfinance, Small Scale Enterprise, Economic Theory & Research, E-Business, Labor Policies

Suggested Citation

Cadot, Olivier and Fernandes, Ana Margarida and Gourdon, Julien and Mattoo, Aaditya, Are the Benefits of Export Support Durable? Evidence from Tunisia (December 1, 2012). World Bank Policy Research Working Paper No. 6295. Available at SSRN: https://ssrn.com/abstract=2190743

Olivier Cadot

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne) ( email )

Unil Dorigny, Batiment Internef
Lausanne, 1015
Switzerland
+41 21 692 3463 (Phone)
+41 21 692 3495 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

World Bank ( email )

1818 H Street NW
Washington, DC 20433
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Ana Margarida Fernandes

World Bank - International Trade Division

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank ( email )

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Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/afernandes

Julien Gourdon

OECD ( email )

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France

Aaditya Mattoo

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

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Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/amattoo

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