콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Trade

Print

Overseas network of export promotion agency and export performance : The Korean case

Related Document
Frame of Image ome have argued that export success in Korea has been due largely to government policies targeted at the promotion of exports. This paper demonstrates that the network of EPA offices abroad has been a critical factor in the success of Korea’s exports. An increase of 10% in the budget of EPA’s overseas offices has been shown to increase exports by 2.45% – 6.34%. The findings of this paper present a clear rationale for government intervention. (JEL F10, F14)
I. INTRODUCTION
Since the appearance of the first export promotion agency (EPA) in Finland in 1919, many countries have found that EPAs help their firms gain access to international markets. According to a research conducted by Lederman et al. (2006), there were national EPAs in 88 of the 116 countries contacted by the s tudy group in 2005. The economic justification for government support for exports is based on scale economies, productivity spillovers, and market failure, including asymmetric information or externalities.1 Governments introduce EPAs to implement their export promotion programs, and EPAs establish their offices overseas in order to facilitate their effective functioning. Even though EPAs have been a popular instrument to promote exports, there has been a great deal of debate regarding the need for government-sponsored EPAs. Keesing and Singer (1991a, 1991b) have argued that EPAs in developing countries are inefficient as a result
would like to thank the KOTRA for providing data on overseas offices. I would like to


Full Text
Title Overseas network of export promotion agency and export performance
Similar Titles
Sub Title

The Korean case

Material Type Articles
Author(English)

Kang, Kichun

Publisher

Western Economic Association International

Date 2011-04
Journal Title; Vol./Issue Contemporary Economic Policy:vol. 29(no. 2)
Pages 11
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Trade
Holding Western Economic Association International

Abstract

Governments have established export promotion agencies (EPAs) in an effort to
boost exports. Despite criticism regarding the effectiveness of EPAs, the policy has not
been abandoned and there has been an increasing recognition of the benefits on the
basis of economic justification, including market failures. Such policies must be based
strictly on evidence. Are EPAs truly crucial for export success? Some have argued that
export success in Korea has been due largely to government policies targeted at the
promotion of exports. This paper demonstrates that the network of EPA offices abroad
has been a critical factor in the success of Korea’s exports. An increase of 10% in the
budget of EPA’s overseas offices has been shown to increase exports by 2.45%–6.34%.
The findings of this paper present a clear rationale for government intervention.