Investing in Trade Promotion Generates Revenue

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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.




This study follows the successful completion of a joint workshop on Impact Assessment by the International Trade Centre (ITC) and the network of European Trade Promotion Organizations (ETPO) in Vienna in January 2014. Financed by the network, for the network, it aimed to deliver practical assessment solutions for its members. Following the workshop, a group of ETPO members requested that ITC coordinate a European-wide study on their impact on trade and GDP in their respective countries.


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