Export Promotion: what works?

Abstract

We explore the heterogeneity in returns to export promotion across countries using a semi-parametric varying coefficient model. We find that a one percent increase in export promotion budgets generates an increase in export growth between 0.03 and 0.08 percent. Returns in terms of GDP per capita show less heterogeneity and vary from 0.05 to 0.07. Differences in the characteristics of export promotion agencies drive the heterogeneity in returns to export promotion across countries. More importantly, characteristics that may help export growth are not necessarily those that help GDP per capita growth.
Citation

Olarreaga, M., Sperlich, S. and Trachsel, V. (2017) "Export Promotion: what works?", Ferdi Working Paper, P184, February 2017