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PROMOTING EFFORTS FROM DEVELOPING COUNTRIES: AN EMPIRICAL TEST OF THE IMPACT OF IMPORT PROMOTION OFFICES

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Increasing exports from developing countries is widely regarded as an important part of a development and growth strategy. A major problem confronting exporters from developing countries is the many market barriers they typically face when attempting to enter markets in developed countries. Different institutions have been established to alleviate this problem, including export promotion offices (EPOs) in various developing countries and import promotion offices (IPOs) in several developed countries. The present study explores the impact of IPOs on exports from developing to developed countries by examin ing the actual pattern of imports into OECD countries over the period 1988 to 1993. Four specific product groups are selected and a model pertaining to explain the pattern of imports is presented. The results show that, even after controlling for a number of economic and policy variables, the share of imports originating in developing coun tries is indeed positively influenced by the presence of an IPO in the importing country. Thus, the results suggest that the establishment of an IPO may have a positive impact on the share of imports originat ing in developing countries.
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Document Type: Research Article

Publication date: April 1, 1999

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