Subsidies and Exports in Germany. First Evidence from Enterprise Panel Data

Sourafel Girma · Holger Görg · Joachim Wagner

24 citations0/0 files storedApplied Economics Quarterly

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Global trade and economics International Business and FDI Innovation Policy and R&D

Abstract

We use newly available representative panel data for manufacturing enterprises in West and East Germany to investigate the link between production-related subsidies and exports. We report that only a small fraction of enterprises is subsidized, and that exports and subsidies are positively related. Using a matching approach to investigate the causal effect of subsidies on export activities we find no impact of subsidies on the probability to start exporting, and only weak evidence for an impact of subsidies on the share of exports in total sales in West Germany but no evidence in East Germany. JEL Classifications: F13, F14, H29

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References

1999The Economics and Econometrics of Active Labor Market Programs 2004Why Some Firms Export 2001A Note on the Firm Size – Export Relationship 2008Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports 2008Grant Support and Exporting Activity 2008Exports and Productivity Growth: First Evidence from a Continuous Treatment Approach 2016Higher Productivity in Importing German Manufacturing Firms: Self-selection, Learning from Importing or Both?2009Exporter Performance in the German Business Services Sector: First Evidence from the Services Statistics Panel

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