Public export promotion and new exporters performance: evidence from Brazilian manufacturing firms

Author(s)

Rodrigo Baggi Prieto Alvarez

• Document type: Master's Dissertation
• Press: Ribeirão Preto.
• Institution: Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto (PCARP/BC)
• Defense date: 2013-06-14

Examining board members

Sérgio Kannebley Júnior; Naercio Aquino Menezes Filho; Elaine Toldo Pazello

• Advisor: Sérgio Kannebley Júnior

Abstract

Understanding the dynamics of persistence and evasion of export activity is essential for the design of export promotion for new exporters and international trade policies. Several results point to the importance of taking into account the specific sector of the industry in the implementation of public policies, which is supported by the new models of international trade theory. The purpose of this work is to investigate the determinants of the performance of Brazilian industrial new exporters, with particular attention to the impacts of Drawback, BNDES Exim and Proex. For this, we analyzed firms between the 1998 and 2003, constituting an unbalanced panel with 8500 firms. By panel data analysis and estimation of duration models, we found that the survival function and the growth of exports clearly differs among companies that use one of the programs and those that do not. One can also say that sunk costs are not negligible among the industrial firms analyzed, which indicates that public export promotion should focus on (i) reducing the dropout rate of new exporters and (ii) minimize the fixed sunk costs related with initial investments to begin the export activty. (AU)

• FAPESP's process: 11/17018-4 - THE EFFECTS OF GOVERNMENT EXPORT ASSISTANCE PROGRAMS ON EXPORTING SUCCESS OF BRAZILIAN MANUFACTURING FIRMS
• Grantee: Rodrigo Baggi Prieto Alvarez
• Support Opportunities: Scholarships in Brazil - Master