The Impact of Export Promotion on Export Market Entry

49 Pages Posted: 17 Jan 2017

See all articles by Annette Schminke

Annette Schminke

Vienna University of Economics and Business

Johannes Van Biesebroeck

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

Date Written: January 2017

Abstract

For small open economies, it is essential that many firms find their way to the export market and most governments provide some form of export promotion assistance. We use detailed firm-level data for Flanders, the largest region in Belgium, to evaluate whether its program raises firms' propensity to start exporting outside the EU single market. We find robust evidence for such an effect by relying on the selection-on-observables assumption which we implement using various estimators. Results remain positive and statistically significant, but are smaller in size, when we use two strategies to mitigate self-selection concerns: (i) focus on sub-samples of firms where endogenous selection into treatment is less likely, and (ii) use firms that receive the weakest form of support as controls for firms receiving more extensive support.

Keywords: export market entry, International Trade, trade policy

JEL Classification: F13, F14

Suggested Citation

Schminke, Annette and Van Biesebroeck, Johannes, The Impact of Export Promotion on Export Market Entry (January 2017). CEPR Discussion Paper No. DP11776. Available at SSRN: https://ssrn.com/abstract=2900193

Annette Schminke (Contact Author)

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Johannes Van Biesebroeck

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

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