Export Promotion Agencies: What Works and What Doesn't

49 Pages Posted: 20 Apr 2016

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: November 1, 2006

Abstract

The number of national export promotion agencies (EPAs) has tripled over the past two decades. While more countries have made them part of their national export strategy, studies have criticized their efficiency in developing countries. 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 industrial and developing countries. Results suggest that on average they have a strong and statistically significant impact on exports. For each $1 of export promotion, the paper estimates 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: Country Strategy & Performance, Economic Theory & Research, Trade Policy, Tax Law, Marketing

Suggested Citation

Lederman, Daniel and Olarreaga, Marcelo and Payton, Lucy, Export Promotion Agencies: What Works and What Doesn't (November 1, 2006). World Bank Policy Research Working Paper No. 4044, Available at SSRN: https://ssrn.com/abstract=940510

Daniel Lederman (Contact Author)

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

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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