Export Promotion Agencies: What Works and What Doesn't

52 Pages Posted: 12 Oct 2006

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)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2006

Abstract

The number of national export promotion agencies (EPAs) has tripled over the last two decades. While more countries made them part of their national export strategy, studies criticized their efficiency in developing countries (Hogan, Keesing and Singer, 1991). Partly in reaction to these critiques, EPAs have been retooled (see ITC, 1998 or 2000 for example). This paper studies the impact of existing EPAs and their strategies, based on a new data set covering 104 developing and developed countries. Results suggest that on average they have a strong and statistically significant impact on exports. For each $1 of export promotion, we estimate a $300 increase in exports for the median EPA. However, there is heterogeneity across regions, levels of development and types of instruments. Furthermore, there are strong diminishing returns, suggesting that as far as EPAs are concerned small is beautiful.

Keywords: Export promotion agencies, developing countries

JEL Classification: F13, O19

Suggested Citation

Lederman, Daniel and Olarreaga, Marcelo and Payton, Lucy, Export Promotion Agencies: What Works and What Doesn't (August 2006). CEPR Discussion Paper No. 5810. Available at SSRN: https://ssrn.com/abstract=936967

Daniel Lederman

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 (Contact Author)

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

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