Abstract
This research examines the relationship of Export Promotion Programs (EPPs), sponsored by a Portuguese Regional Association for Development on Trade and Industry, with firms’ export performance. To investigate this, two models were applied using panel data analyses that relate export performance to variables such as participation in EPPs, age and size of firms. Data on 198 firms for the sampling period 2010 and 2018 was drawn from a Portuguese Regional Development Association and SABI (Iberian Balance sheet Analysis System) database. The results show that participation in EPPs does have a positive influence on the export performance of firms, especially for those firms with previous export experience, demonstrating the importance of using these programs. Findings also document that firm size relates positively export performance, whereas firms age show a negative effect on export performance, suggesting that larger firms with more resources positively influence exports and an increase in firms’ age may increase their cultural inertia, inability to change strategies, decreasing their export performance, respectively. Finally, the participation in EPPs seems not to influence export performance for firms without previous export experience. The research contributes to the literature providing evidence on the role of EPP on firms’ export performance behavior promoted by regional development associations.
Highlights
Exporting is considered a crucial commercial activity for the economic well-being of firms and countries (Jalali 2012)
Single exposure to Export Promotion Programs (EPPs) did not significantly increase exports but multiple exposure did. This suggests that firms need to learn about exports for EPP to be more effective, that EPP helps firms build on experience rather than overcoming the barriers, and that EPPs may not have given enough impetus for firms to enter export markets being the positive effect is driven by the firms that are heavy users of EPP
Data were collected on a set of Portuguese firms that participated in at least one of four export promotion programs mediated by a regional development association
Summary
Exporting is considered a crucial commercial activity for the economic well-being of firms and countries (Jalali 2012). For regional development associations it is a unique opportunity to support their associates, especially SMEs, exploring new markets that otherwise would not be able to with the limited resources they have Studying this theme is relevant and pertinent since there is always a need for organizations that finance export promotion programs to improve and adapt their design and create better procedures for their implementation. The study uses a sample of 198 Portuguese firms that participated in at least one export promotion program intermediated by a Portuguese Regional Association for Development on Trade and Industry, in the years 2011, 2013, 2014, and 2015 using a quantitative methodology based on the definition of two panel data econometric models.
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