Capacity building as a route to export market expansion: A six-country experiment in the Western Balkans

A-Tier
Journal: Journal of International Economics
Year: 2023
Volume: 144
Issue: C

Authors (3)

Cusolito, Ana P. (not in RePEc) Darova, Ornella (not in RePEc) McKenzie, David (World Bank Group)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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. We conducted a six-country randomized experiment with 225 firms in the Western Balkans to test the effectiveness of 30 h of live group-based training and 5 h 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, we find positive and significant impacts 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.

Technical Details

RePEc Handle
repec:eee:inecon:v:144:y:2023:i:c:s0022199623000806
Journal Field
International
Author Count
3
Added to Database
2026-01-26