Investing in Trade Promotion Generates Revenue
by International Trade Centre
2020-04-20 07:14:32
Investing in Trade Promotion Generates Revenue
by International Trade Centre
2020-04-20 07:14:32
Recent analytical literature has concluded that money spent on export promotion tends to foster export growth. This work discusses the findings of recent work by a team of consultants that find that a 1% increase in export promotion budgets increases...
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Recent analytical literature has concluded that money spent on export promotion tends to foster export growth. This work discusses the findings of recent work by a team of consultants that find that a 1% increase in export promotion budgets increases exports by 0.074%, confirming results in the earlier literature. Their work also suggests that these export gains translate into very large GDP per capita gains. Indeed, a 1% increase in export budgets generates a 0.065% increase in GDP per capita. Trade Promotion Organizations characteristics that tend to generate large export growth do not necessarily generate large gains in terms of GDP per capita growth.
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