Publication: Capacity Building as a Route to Export Market Expansion: A Six-Country Experiment in the Western Balkans
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2022-12
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2023-01-10
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The limited market size of many small emerging economies is a key constraint to the growth of innovative small and medium enterprises. Exporting offers a potential solution, but firms may struggle to locate and appeal to foreign buyers. A six-country randomized experiment was conducted with 225 firms in the Western Balkans to test the effectiveness of 30 hours of live group-based training and 5 hours of one-on-one remote consulting in overcoming these constraints. Treated firms used techniques such as search engine optimization and improved Facebook content to increase their digital presence and better reach foreign customers. A year later, positive and significant impacts are found on the number of customers, and a significant intensive margin increase in export sales. Qualitative interviews suggest this improvement came from a combination of sector-specific advice on market expansion, and through an encouragement effect which gave entrepreneurs the confidence to try new sales strategies.
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“Darova, Omella; Cusolito, Ana P.; McKenzie, David. 2022. Capacity Building as a Route to Export Market Expansion: A Six-Country Experiment in the Western Balkans. Policy Research Working Papers;10256. © World Bank. http://hdl.handle.net/10986/38441 License: CC BY 3.0 IGO.”
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