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Subsidies, spillovers and exports

Girma, Sourafel; Görg, Holger; Stepanok, Ignat

Authors

SOURAFEL GIRMA sourafel.girma@nottingham.ac.uk
Professor of Industrial Economics

Holger Görg

Ignat Stepanok



Abstract

© 2019 Elsevier B.V. We ask whether production related subsidies have a role to play in explaining Chinese firms’ export performance. We, firstly, implement an estimation approach that allows for both direct and indirect (“spillover”) effects of the subsidy on the probability to export. Secondly, our approach enables us to allow these two effects to differ depending on the share of firms that already receive subsidies in a well-specified cluster. These two issues have, to the best of our knowledge, not been considered in evaluations of subsidies on export performance. Our estimation results provide a sobering assessment of the role of production related subsidies in stimulating export performance.

Journal Article Type Article
Publication Date 2020-01
Journal Economics Letters
Print ISSN 0165-1765
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 186
Article Number 108840
APA6 Citation Girma, S., Görg, H., & Stepanok, I. (2020). Subsidies, spillovers and exports. Economics Letters, 186, https://doi.org/10.1016/j.econlet.2019.108840
DOI https://doi.org/10.1016/j.econlet.2019.108840
Keywords Economics and Econometrics; Finance
Publisher URL https://www.sciencedirect.com/science/article/pii/S0165176519304252
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