The role of subsidies for exports: Evidence from Portuguese manufacturing firms

Armando Silva ()

No 35, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: Production subsidies have not been used by International Business literature to explain firms internationalization processes. We argue subsides may have a role to play in that process. Using a longitudinal database (1996-2003) at the plant level, this paper aims to shed light on the causal nexus between production-related subsidies and exports, in Portugal. We implement a propensity score matching approach in order to evaluate the effects of subsidies on both the probability of domestic firms to begin exporting and on the probability of increasing the export share of already exporters. We find no impact of subsidies on the ability of domestic firms to become exporters; additionally, no effects of subsidies are detected on export shares. Such disappointing results may be explained by the inefficiency in the granting criteria.

Keywords: Subsidies; Exports; Portugal; Matching (search for similar items in EconPapers)
JEL-codes: F13 F14 H29 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2011-02, Revised 2011-02
New Economics Papers: this item is included in nep-cse and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_35.pdf First version, 2011 (application/pdf)

Related works:
Working Paper: The role of subsidies for exports: Evidence for Portuguese manufacturing firms (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0035

Access Statistics for this paper

More papers in GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia Contact information at EDIRC.
Bibliographic data for series maintained by Joana Almodovar ().