Information Barriers, Export Promotion Institutions, and the Extensive Margin of Trade

This paper assesses role played by export promotion institutions in shaping the extensive margin of Latin American and Caribbean countries' exports over the period 1995-2004. The authors find that the presence of offices of export promotion agencies abroad favors an increase in the number of differentiated goods that are exported, whereas a larger number of diplomatic representations in the importer countries seem to be associated with exports of a larger number of homogeneous goods.