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Discussion Paper Details

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Title: Grant Support and Exporting Activity

Author(s): Holger Görg, Michael Henry and Eric Strobl

Publication Date: January 2007

Keyword(s): difference-in-differences, exporting, propensity score matching and subsidies

Programme Area(s): International Trade and Regional Economics

Abstract: This paper investigates whether government support can act to increase exporting activity. We use a uniquely rich data set on Irish manufacturing plants and employ an empirical strategy that combines a non-parametric matching procedure with a difference-in-differences estimator in order to deal with the potential selection problem inherent in the analysis. Our results suggest that if grants are large enough they can encourage already exporting firms to compete more effectively on the international market. However, there is little evidence that grants encourage non-exporters to start exporting.

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Bibliographic Reference

Görg, H, Henry, M and Strobl, E. 2007. 'Grant Support and Exporting Activity'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6054