Free lunch or vital support? Export promotion in The Netherlands

Purpose – The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP) participation on the export performance of Dutch small and medium-sized enterprises (SMEs). Design/methodology/ap...

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Main Author: Marcel van den Berg
Format: Article
Language:English
Published: Emerald Publishing 2022-10-01
Series:Applied Economic Analysis
Subjects:
Online Access:https://www.emerald.com/insight/content/doi/10.1108/AEA-07-2020-0094/full/pdf
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author Marcel van den Berg
author_facet Marcel van den Berg
author_sort Marcel van den Berg
collection DOAJ
description Purpose – The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP) participation on the export performance of Dutch small and medium-sized enterprises (SMEs). Design/methodology/approach – The authors confront participation data of an EPP targeting SMEs with rich firm-level data and use propensity score matching techniques combined with regression analysis. Findings – The authors show that exports generated by participants do generally rise in the years after program entry, however, export growth does not outpace that of comparable, but unsupported firms. Nonetheless, there is some evidence suggesting that export shares in sales rise faster among program entrants, particularly in the first and second years after participation. Furthermore, the authors present evidence suggesting that the probability of becoming a permanent exporter is higher for participants relative to beginning exporters that did not receive support from the program. Originality/value – The analysis contributes to the still relatively small literature dealing with the impact of government export promotion instruments on export performance using firm-level micro-data. The subject of analysis are Dutch small businesses. SMEs, particularly operating in advanced economies, are a group that is not frequently considered separately in this respect.
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spelling doaj.art-bb9179111b6f4d239e0fc5cf9ae3343b2023-06-29T19:07:52ZengEmerald PublishingApplied Economic Analysis2632-76272022-10-01309021322810.1108/AEA-07-2020-0094Free lunch or vital support? Export promotion in The NetherlandsMarcel van den Berg0Statistics Netherlands, Heerlen, The NetherlandsPurpose – The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP) participation on the export performance of Dutch small and medium-sized enterprises (SMEs). Design/methodology/approach – The authors confront participation data of an EPP targeting SMEs with rich firm-level data and use propensity score matching techniques combined with regression analysis. Findings – The authors show that exports generated by participants do generally rise in the years after program entry, however, export growth does not outpace that of comparable, but unsupported firms. Nonetheless, there is some evidence suggesting that export shares in sales rise faster among program entrants, particularly in the first and second years after participation. Furthermore, the authors present evidence suggesting that the probability of becoming a permanent exporter is higher for participants relative to beginning exporters that did not receive support from the program. Originality/value – The analysis contributes to the still relatively small literature dealing with the impact of government export promotion instruments on export performance using firm-level micro-data. The subject of analysis are Dutch small businesses. SMEs, particularly operating in advanced economies, are a group that is not frequently considered separately in this respect.https://www.emerald.com/insight/content/doi/10.1108/AEA-07-2020-0094/full/pdfExportsExport promotionSMEsFirm performance
spellingShingle Marcel van den Berg
Free lunch or vital support? Export promotion in The Netherlands
Applied Economic Analysis
Exports
Export promotion
SMEs
Firm performance
title Free lunch or vital support? Export promotion in The Netherlands
title_full Free lunch or vital support? Export promotion in The Netherlands
title_fullStr Free lunch or vital support? Export promotion in The Netherlands
title_full_unstemmed Free lunch or vital support? Export promotion in The Netherlands
title_short Free lunch or vital support? Export promotion in The Netherlands
title_sort free lunch or vital support export promotion in the netherlands
topic Exports
Export promotion
SMEs
Firm performance
url https://www.emerald.com/insight/content/doi/10.1108/AEA-07-2020-0094/full/pdf
work_keys_str_mv AT marcelvandenberg freelunchorvitalsupportexportpromotioninthenetherlands