Export boosting policies and firm behaviour: Review of empirical evidence around the world

Srhoj, Stjepan and Vitezic, Vanja and Wagner, Joachim (2020): Export boosting policies and firm behaviour: Review of empirical evidence around the world.

Abstract

How effective are direct government policies for boosting exports? We answer this question with a structured overview of 34 studies covering 26 countries around the world, and in doing so, we provide nine findings. We show export boosting policies are heterogenenous by design and include export promotion policies, public grants for exporters, public export guarantee schemes, subsidised export loans, and randomised foreign market access programmes. Our review provides insights into policy effectiveness with respect to extensive and intensive export margins as well as firms' production function inputs and its outputs. Heterogeneity of effects across firm characteristics is emphasised and the discussion is enriched with new evidence on spillover effects from export boosting policies. Finally, we provide back of the envelope calculations of aggregate macroeconomic effects and give recommendations for policymakers. Our findings show export boosting policies are relevant and proven-to-be-effective policy instruments.

• Item Type: MPRA Paper
• Language: English
• Keywords: export promotion policies; guarantees; grants; loans; impact evaluation; review
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L15 - Information and Product Quality ; Standardization and Compatibility; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy

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