The Impact of Trade Promotion Organizations on Exports: Evidence from the COVID-19 Pandemic

Yewon Choi, Ana Margarida Fernandes, Arti Grover, Leonardo Iacovone and Marcelo Olarreaga

No 11182, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the impact of trade promotion organizations on exports during the COVID-19 pandemic using a World Bank survey. The results suggest that increased trade promotion organization budgets significantly boosted exports during downturns but had no effect during the recovery phase. Interestingly, e-commerce programs adopted by trade promotion organizations negatively affected exports during downturns as they diverted resources away from productive support, especially for sectors not intensive in online trade. These findings suggest that countercyclical trade promotion organizations budgets may enhance trade resilience during similar global shocks.

Date: 2025-08-11
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