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

Authors: Joan Freixanet; Iya Churakova; Josep Rialp; Hsin-Chen Lin

Addresses: Graduate School of Management, Saint Petersburg University, Volkhovsky per., 3, 199004, Saint Petersburg, Russia ' Graduate School of Management, Saint Petersburg University, Volkhovsky per., 3, 199004, Saint Petersburg, Russia ' Autonomous University of Barcelona, Plaça Cívica, s/n, 08193 Bellaterra, Barcelona, Spain ' University of New Brunswick, 3 Bailey Dr, Fredericton, NB E3B 5A3, Canada

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.

Keywords: export promotion; impact evaluation; propensity-score matching; small- and medium-sized enterprise; longitudinal study; economic downturn.

DOI: 10.1504/EJIM.2021.116703

European Journal of International Management, 2021 Vol.16 No.1, pp.118 - 147

Received: 28 Jan 2018
Accepted: 03 Sep 2018
Published online: 30 Jul 2021 *

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