Do Trade Fairs Promote Export?

         
Author Name MAKIOKA Ryo (Fellow, RIETI)
Creation Date/NO. January 2020 20-E-007
Research Project Comprehensive Research on Evidence Based Policy Making (EBPM)
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Abstract

The paper analyzes the effects of attending trade fairs on exports, foreign direct investments (FDI), and service outsourcing, using Japanese firm-level data on both performances and trade-fair participation. To solve self-selection problem, I utilize a difference-in-differences matching estimation approach with unique firm characteristics, as well as a linear estimation approach with paired fixed-effects. The results show that there are positive effects of attending trade-fairs on exporting status. Additionally, the positive results are mainly associated with attending trade fairs in geographically and culturally farther markets such as Europe or the U.S., but not from attending the nearest markets, such as Asian countries or China. Furthermore, attending a trade fair induces firms to outsource their market research activity.