The anatomy and the impact of export promotion agencies

Export promotion and intra‐industry reallocations

“…2 Lederman et al (2010) survey 88 EPAs in developed and developing countries in 2005 and ask about institutional structure, responsibilities, objectives, resources and expenditures, and activities and client orientation. Cruz et al (2018) is based on a follow-up survey from 2010. 3 Interestingly, when firms are asked in which aspect of trade costs they value improvements the most, "Access to information about export opportunities\x92\x92 is the top priority for SMEs and large firms.…”

“…In 2010, at least 116 countries had an export promotion agency, see the anatomy of export promotion agencies in Cruz, Lederman, and Zoratto (2018), and the International Trade Center (ITC) has a strategic goal to improve performance of trade support institutions. 1 Yet, based on economists' understanding of gains from trade, it is far from obvious how, when, and why such programs should benefit individual countries, let alone situations where all countries engage in such programs, and how such programs affect trade partners.While countries have a myriad of different setups for trade support, common features are that trade support is predominantly export oriented and publicly funded/subsidized (even if operated in partnership with the private sector), see OECD/WTO (2015), Lederman, Olarreaga, and Payton (2010) as well as Cruz et al (2018). 2 OECD/WTO (2015) reports that top priorities for export promotion agencies (henceforth EPAs) and firms (suppliers and users of export promotion, respectively) regarding reduction of export barriers include informational barriers about export opportunities and about…”

“…Export promotion programs are ubiquitous and empirical analyses document that they facilitate exports (see below). In 2010, at least 116 countries had an export promotion agency, see the anatomy of export promotion agencies in Cruz, Lederman, and Zoratto (2018), and the International Trade Center (ITC) has a strategic goal to improve performance of trade support institutions. 1 Yet, based on economists' understanding of gains from trade, it is far from obvious how, when, and why such programs should benefit individual countries, let alone situations where all countries engage in such programs, and how such programs affect trade partners.…”

“…While countries have a myriad of different setups for trade support, common features are that trade support is predominantly export oriented and publicly funded/subsidized (even if operated in partnership with the private sector), see OECD/WTO (2015), Lederman, Olarreaga, and Payton (2010) as well as Cruz et al (2018). 2 OECD/WTO (2015) reports that top priorities for export promotion agencies (henceforth EPAs) and firms (suppliers and users of export promotion, respectively) regarding reduction of export barriers include informational barriers about export opportunities and about…”

“…Legally, as export promotion is offered to all firms (up to horizontal measures such as size) it is unlikely to be considered specific to (a group of) firms/industries and thus a subsidy according to the "Agreement on subsidies and countervailing measures.\x92\x92 Factually, export promotion is widespread, cf. Cruz et al (2018), and I am not aware of any WTO-case in which a country has filed another country for its export promotion activities. Finally, export promotion is more about reducing a competitive handicap than obtaining a competitive edge.…”