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OVERSEAS NETWORK OF EXPORT PROMOTION AGENCY AND EXPORT PERFORMANCE: THE KOREAN CASE
Author(s) -
KANG KICHUN
Publication year - 2011
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2010.00214.x
Subject(s) - promotion (chess) , agency (philosophy) , government (linguistics) , export performance , business , trade promotion , economic interventionism , criticism , economics , international trade , intervention (counseling) , international economics , public economics , free trade , political science , philosophy , epistemology , politics , law , psychology , linguistics , psychiatry
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. ( JEL F10, F14)