Economic rationale for government export promotion policy

Abstract

The article focuses on the government export promotion policy. Outlining the positive effects of export promotion on export volume and GDP and analyzing the underlying economic reasons for that, the author makes some arguments in favor of export promotion policy as a form of government intervention in the economy. The arguments are combined into three groups: productivity gains for exporting firms together with learning by exporting effect, positive externalities and elimination of export constraining market failures. The author states the corresponding export promotion policy actions