Did export promotion help firms weather the crisis?

Johannes Van Biesebroeck, Jozef Konings, Christian Volpe Martincus

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

In the global recession of 2009, exports declined precipitously in many countries. We illustrate with firm-level data for Belgium and Peru that the decline was very sudden and almost entirely due to lower export sales by existing exporters. After the recession, exports rebounded almost equally quickly and we evaluate whether export promotion programs were an effective tool aiding this recovery. We show that firms taking advantage of this type of support did better during the crisis, controlling flexibly for systematic differences between supported and control firms. The primary mechanism we identify is that supported firms are generally more likely to survive on the export market and, in particular, are more likely to continue exporting to countries hit by the financial crisis. In terms of absolute magnitudes, the mid-point of the range of estimates suggest a 6%to 11%, respectively for Belgium and Peru, higher probability of survival on the export market for supported firms and approximately 20% to 10% higher exports for surviving exporters.

Original languageEnglish
Article numbereiw014
Pages (from-to)653-702
Number of pages50
JournalEconomic Policy
Volume31
Issue number88
DOIs
Publication statusPublished - Oct 1 2016

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weather
market
financial crisis
firm
Weather
Export promotion
Belgium
Peru
Exporters
Export markets
Exporting
Firm-level data
Recession
Financial crisis
Global recession

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

Cite this

Van Biesebroeck, J., Konings, J., & Martincus, C. V. (2016). Did export promotion help firms weather the crisis? Economic Policy, 31(88), 653-702. [eiw014]. https://doi.org/10.1093/epolic/eiw014

Did export promotion help firms weather the crisis? / Van Biesebroeck, Johannes; Konings, Jozef; Martincus, Christian Volpe.

In: Economic Policy, Vol. 31, No. 88, eiw014, 01.10.2016, p. 653-702.

Research output: Contribution to journalArticle

Van Biesebroeck, J, Konings, J & Martincus, CV 2016, 'Did export promotion help firms weather the crisis?', Economic Policy, vol. 31, no. 88, eiw014, pp. 653-702. https://doi.org/10.1093/epolic/eiw014
Van Biesebroeck J, Konings J, Martincus CV. Did export promotion help firms weather the crisis? Economic Policy. 2016 Oct 1;31(88):653-702. eiw014. https://doi.org/10.1093/epolic/eiw014
Van Biesebroeck, Johannes ; Konings, Jozef ; Martincus, Christian Volpe. / Did export promotion help firms weather the crisis?. In: Economic Policy. 2016 ; Vol. 31, No. 88. pp. 653-702.
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