Grant Support and Exporting Activity

29 Pages Posted: 28 Jun 2007

See all articles by Holger Görg

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Michael Henry

Aston University

Eric Strobl

Ecole Polytechnique, Paris - Department of Economic Sciences; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 2007

Abstract

This paper investigates whether government support can act to increase exporting activity. We use a uniquely rich data set on Irish manufacturing plants and employ an empirical strategy that combines a non-parametric matching procedure with a difference-in-differences estimator in order to deal with the potential selection problem inherent in the analysis. Our results suggest that if grants are large enough they can encourage already exporting firms to compete more effectively on the international market. However, there is little evidence that grants encourage non-exporters to start exporting.

Keywords: Difference-in-differences, exporting, propensity score matching, subsidies

JEL Classification: F2, H2, L2, O3

Suggested Citation

Gorg, Holger and Henry, Michael and Strobl, Eric, Grant Support and Exporting Activity (January 2007). CEPR Discussion Paper No. 6054, Available at SSRN: https://ssrn.com/abstract=997075

Holger Gorg (Contact Author)

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Michael Henry

Aston University ( email )

Aston Triangle
Birmingham, B4 7ET
United Kingdom

HOME PAGE: http://www.abs.aston.ac.uk/newweb/staff/detail.asp/sfldStaffID=A0000543

Eric Strobl

Ecole Polytechnique, Paris - Department of Economic Sciences ( email )

Ecole Polytechnique
Department of Economics
Paris, 75005
France

IZA Institute of Labor Economics

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

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