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Do export promotion agencies increase exports?

Kazunobu Hayakawa (), Hyun-Hoon Lee and Donghyun Park ()

No 313, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper, we examine the role of export promotion agencies (EPAs) in promoting exports from Japan and Korea. Looking at two home countries enables us to tackle endogeneity issues by controlling for both country-pair time-invariant characteristics and importing country time-varying characteristics. Our empirical results indicate that the coefficients of the EPA dummy are similar in size to those of the FTA dummy. This implies that establishing an EPA office in a country is equivalent to signing an FTA with that country. In addition, we find that EPA’s effects are larger for manufactured products than non-manufactured products. Finally, the EPA effect is larger for low income trade partners than for high income trade partners.

Keywords: South Korea; Japan; Imports; Administrative organization; Trade policy; Export promotion; FTA; Gravity model (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 F15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2011-10-01
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 313. 2011-10-01

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Related works:
Journal Article: Do Export Promotion Agencies Increase Exports? (2014) Downloads
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