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Are export promotion programs effective in promoting the internalization of SMEs?

Simona Comi and Laura Resmini

Economia Politica: Journal of Analytical and Institutional Economics, 2020, vol. 37, issue 2, No 8, 547-581

Abstract: Abstract This paper investigates the impact of Export Promotion Programs (EPPs) in Lombardy—one of the richest region in Italy and one of the four Motors of Europe—on the export performance of beneficiary firms. To assess the impact of the EPPs, we applied a fixed-effect differences-in-differences estimator with ex-ante matching. We shed light on why and how EPPs work by exploring in details what dimensions of export performance respond better to these programs, which support services are more related to export success and which firms benefit more. Our estimates suggest that assisted firms show higher export propensity and export intensity than non-assisted firms, with micro- and small-sized firms and already exporting firms benefiting the most. Last but not least, the effect of EPPs remains positive and significant even when the potential impact of other subsidies is accounted for. These results are useful for improving the design of EPPs.

Keywords: SMEs; Export promotion; Impact evaluation; Export performance (search for similar items in EconPapers)
JEL-codes: F13 F14 L15 L25 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s40888-019-00170-8

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Economia Politica: Journal of Analytical and Institutional Economics is currently edited by Alberto Quadrio Curzio

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Handle: RePEc:spr:epolit:v:37:y:2020:i:2:d:10.1007_s40888-019-00170-8