Journal
JOURNAL OF INTERNATIONAL ECONOMICS
Volume 107, Issue -, Pages 19-33Publisher
ELSEVIER
DOI: 10.1016/j.jinteco.2017.03.009
Keywords
International trade; Trade policy; Export market entry
Categories
Funding
- ERC [241127]
- Program Financing by KU Leuven
- European Research Council (ERC) [241127] Funding Source: European Research Council (ERC)
Ask authors/readers for more resources
For small open economies, it is essential that many firms find their way to the export market and most governments provide some form of export promotion assistance. We use detailed firm-level data for Flanders, the largest region in Belgium, to evaluate whether its program raises firms' propensity to start exporting outside the EU single market. We find robust evidence for such an effect by relying on the selection-on-observables assumption which we implement using various estimators. We address a likely upward bias due to self-selection into support using two strategies: (i) focus on sub-samples of firms where endogenous selection into treatment is less likely, and (ii) use firms that receive the weakest form of support as controls for firms receiving more extensive support. The effects remain positive and statistically significant, but are smaller in magnitude and in the second case estimated much less precisely. (C) 2017 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available