Riding the storm out: The short- and long-term effects of export promotion on firm performance during an economic downturn

Joan Freixanet*, Iya Churakova, Josep Rialp, Hsin Chen Lin

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)

Abstract

This study evaluates the short- and long-term impact of export promotion by focusing on a Spanish program to support beginning exporters. Based on the observations of 1884 firms over the period of 2005–2014, the findings demonstrate that the program had a positive impact on participants’ export and economic performance, and the effects were persistent. The paper concludes that focusing export promotion towards SMEs and beginning exporters and ensuring a balanced mix of various forms of assistance are critical to the effectiveness and lasting effects of export promotion. It also shows that, during the recent great trade collapse starting in 2008, firms using this type of assistance outperformed firms in the control group and the national average regarding both export growth and survival rates. These results are encouraging regarding the countercyclical potential of export promotion. The findings have significant implications for scholars, managers and policymakers.

Original languageEnglish
Pages (from-to)118-147
Number of pages30
JournalEuropean Journal of International Management
Volume16
Issue number1
DOIs
Publication statusPublished - 2021

Keywords

  • Economic downturn
  • Export promotion
  • Impact evaluation
  • Longitudinal study
  • Propensity-score matching
  • Small- and medium-sized enterprise

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