Assessing the Impact of Export Promotion Expenditure on National Export Performance: A Comparative Study of Canada and the United States

Abstract

This study investigates the correlation between export promotion and export outcomes. Drawing on historical data from Canadian and U.S. performance records, the study uses linear regression to examine the impact of export promotion spending on a nation’s export performance. Building upon previous research that identified positive and significant returns for specific commodities, this study broadens the scope to analyze government spending on export promotion at an aggregate level. The analysis is presented in two main parts: first, examining the relationship between total input and output in dollars. Second the study assesses annual changes in dollar amounts alongside other relevant variables affecting export performance. The findings confirm previous assertions of positive returns from export promotion spending but also reveal inefficiencies, suggesting that such expenditures may not always yield optimal results.