Description
Title: Export performance and the effect of export promotion programs
Abstract: This study investigates the connection between export performance of businesses and Export Promotion Programs (EPPs), sponsored by a Portuguese Regional Association for Development on Trade and Industry. Two models were applied using panel data analyses to examine this relationship between export performance and factors like EPP participation, firm age, and firm size. Data on 198 businesses for the sampling years of 2010 and 2018 were taken from the SABI (Iberian Balance sheet Analysis System) and Portuguese Regional Development Association databases. The findings highlight the value of utilizing these programs by demonstrating that participation in EPPs does have a positive impact on a firm’s ability to export, particularly for those firms with prior export experience. The results also show a positive relationship between firm size and export performance, whereas a negative relationship between firm age and export performance, indicating that older firms may be less able to change their strategies due to cultural inertia while larger firms may have a positive impact on exports. Finally, for companies with no prior export experience, participation in EPPs does not appear to have an impact on export performance. The study adds to the body of knowledge by demonstrating how regional development associations’ behavior is supported by EPP in terms of firms’ export performance.
Keywords: internationalization; export promotion programs; export intensity
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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