Did Export Promotion Help Firms Weather the Crisis?

VIVES Discussion Paper, No. 51

50 Pages Posted: 1 Feb 2016

See all articles by Johannes Van Biesebroeck

Johannes Van Biesebroeck

K.U.Leuven; Centre for Economic Policy Research (CEPR)

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Christian Volpe Martincus

Inter-American Development Bank

Multiple version iconThere are 2 versions of this paper

Date Written: January 2016

Abstract

In the global recession of 2009, exports declined precipitously in many countries. We illustrate with firm-level data for Belgium and Peru that the decline was very sudden and almost entirely due to lower export sales by existing exporters. After the recession, exports rebounded almost equally quickly and we evaluate whether export promotion programs were an effective tool aiding this recovery. We show that firms taking advantage of this type of support did better during the crisis, controlling flexibly for systematic differences between supported and control firms. The primary mechanism we identify is that supported firms are generally more likely to survive on the export market and, in particular, are more likely to continue exporting to countries hit by the financial crisis.

Suggested Citation

Van Biesebroeck, Johannes and Konings, Jozef and Volpe Martincus, Christian, Did Export Promotion Help Firms Weather the Crisis? (January 2016). VIVES Discussion Paper, No. 51. Available at SSRN: https://ssrn.com/abstract=2724530 or http://dx.doi.org/10.2139/ssrn.2724530

Johannes Van Biesebroeck (Contact Author)

K.U.Leuven ( email )

Naamsestraat 69
B-3000 Leuven
Belgium
+3216326793 (Phone)
+3216326796 (Fax)

HOME PAGE: http://www.econ.kuleuven.be/public/N07057/

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jozef Konings

Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie ( email )

Waaistraat 6 - box 3511
Leuven, 3000
Belgium
+32 16 326 589 (Phone)
+32 16 326 599 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Christian Volpe Martincus

Inter-American Development Bank ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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