Export promotion agencies: Do they work?

Daniel Lederman, Marcelo Olarreaga, Lucy Payton

Research output: Contribution to journalArticlepeer-review

Abstract

The number of national export promotion agencies (EPAs) has tripled over the last two decades. While more countries made them part of their export strategy, studies criticized their efficacy in developing countries. EPAs were retooled, partly in response to these critiques. This paper studies the impact of today's EPAs and their strategies, based on new survey data covering 103 developing and developed countries. Results suggest that on average they have a statistically significant effect on exports. Our identification strategies highlight the importance of EPA services for overcoming foreign trade barriers and solving asymmetric information problems associated with exports of heterogeneous goods. There are also strong diminishing returns, suggesting that as far as EPAs are concerned, small is beautiful.

Original languageEnglish
Pages (from-to)257-265
Number of pages9
JournalJournal of Development Economics
Volume91
Issue number2
DOIs
StatePublished - Mar 2010
Externally publishedYes

Keywords

  • Developing countries
  • Export promotion

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics

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