Department of Economics and Business Economics

Export promotion and intra-industry reallocations

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DOI

Publicly funded/subsidized export promotion agencies reducing informational barriers to export and thus firm‐level fixed/sunk costs of exporting are present in most countries. This paper develops a two‐country one‐sector heterogeneous firms model with origin‐specific publicly funded export promotion agencies and shows how the public good nature of export‐relevant information and the ability to engage in global public affairs may rationalize the existence of such agencies. A novel finding of the model is that gains from export promotion are shared with the trade partner via intra‐industry reallocations.
Original languageEnglish
JournalReview of International Economics
Volume28
Issue2
Pages (from-to)303-319
Number of pages17
ISSN0965-7576
DOIs
Publication statusPublished - 2020

    Research areas

  • FIRM ENTRY, IMPACT, MARGINS, MONOPOLISTIC COMPETITION, TRADE

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