Subsidies and exports in Germany: first evidence from enterprise panel data

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We use newly available representative panel data for manufacturing enterprises in West and East Germany to investigate the link between production-related subsidies and exports. We report that only a small fraction of enterprises is subsidized, and that exports and subsidies are positively related. Using a matching approach to investigate the causal effect of subsidies on export activities we find no impact of subsidies on the probability to start exporting, and only weak evidence for an impact of subsidies on the share of exports in total sales in West Germany but no evidence in East Germany.
Original languageEnglish
JournalApplied Economics Quarterly
Volume55
Issue number3
Pages (from-to)179-195
Number of pages17
ISSN1611-6607
DOIs
Publication statusPublished - 07.2009

DOI

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