The role of government in promoting exports during an economic recession

Abstract

Since 1920 there have been 15 notable economic recessions and expansions, each lasting on average just over a year. This paper considers the contingent effect of economic recession on export performance and the consequent role of institutional support. The research investigates perceived changes among export firms in these variables, both before and during a recession. It considers whether recession in the domestic market acts as a motivator for firms to enter export markets. It also investigates the effect of the government support on export levels and on each of the competitive offering variables. Data on the perceptions of managers about these variables both before and during the recession is collected from a survey of 1,000 Australian export firms. Findings are presented and implications for theory development and management are discussed. Limitations are noted and directions for future research are offered.