Entering New Country and Product Markets: Does Export Promotion Help?
Peer Reviewed
Date issued
Aug 2010
Subject
Trade Facilitation;
Public Administration;
Business Development
JEL code
C23 - Panel Data Models • Spatio-temporal Models;
F13 - Trade Policy • International Trade Organizations;
F14 - Empirical Studies of Trade;
H32 - Firm;
H40 - Publicly Provided Goods: General;
L15 - Information and Product Quality • Standardization and Compatibility;
L25 - Firm Performance: Size, Diversification, and Scope;
O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements;
O24 - Trade Policy • Factor Movement Policy • Foreign Exchange Policy
Country
Uruguay
Category
Working Papers
Entering new export markets is primarily a discrete choice. Even though several empirical papers have used modeling strategies consistent with this fact, no study has examined the effects of public policies aimed at affecting this decision within this setting. In this paper we assess the impact of trade promotion activities on export outcomes using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007 to estimate a binary outcome model which allows for unobserved heterogeneity. We find that trade supporting activities have helped firms reach new destination countries and introduce new differentiated products.
