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Are export promotion programs efficient for small and medium enterprises?

Bruno Karoubi (), Marjorie Lecerf () and Gael Bertrand ()
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Bruno Karoubi: Université Paris Est Créteil
Marjorie Lecerf: Paris School of Business
Gael Bertrand: Essca School of management

Economics Bulletin, 2018, vol. 38, issue 1, 105-110

Abstract: Focusing on Small and Medium Enterprises, we evaluate the impact of Export Promotion Programs on the probability of exporting and on the proportion of export related sales (export intensity) by exploiting a unique database of 259 firms. Employing a matching-based methodology and correcting for selection bias, we show that public support causes an increase of 16.27% of export intensity and a 25% increase in the probability of turning to export. We investigate for the first time the interaction between firm characteristics and the nature of public support. Only financial and innovation support increase export intensity while only network related support impacts the probability of exporting. Public support significantly impacts only profit-making firms and firms situated in an internationally exposed environment. This study fills an important gap in the literature by providing evidence that firms in the sector of services do benefit from public support, as opposed to manufacturing firms.

Keywords: Internationalization; Services; Trade; Small and medium-sized enterprises; Export activities; EPP (search for similar items in EconPapers)
JEL-codes: M2 F2 (search for similar items in EconPapers)
Date: 2018-01-24
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