The Impact of export promotion policies on MSMEs internationalization. The case study of the Piano Export Sud (PES) in Southern Italy

Micro, Small, and Medium Enterprises (MSMEs) – the backbone of the EU economy – often face significant barriers when attempting to access foreign markets. Recognizing the critical role of internationalization in enhancing firm competitiveness, public policies have long aimed to support firms in their global expansion efforts. However, the effectiveness of these policies remains a subject of debate. Acknowledging the ongoing evaluation gap in this area, our research seeks to contribute to closing this gap by estimating the effects of the ‘Piano Export Sud’ (PES) program, which targets MSMEs in Southern Italy. Our study makes several contributions to the literature. It utilizes a unique and extensive dataset encompassing almost two million firms across eight target regions, with nearly nine million observations, along with a specialized dataset on exporters. We employ a range of methods, including the Theory of Change framework and cutting-edge econometric techniques that address the complexities of staggered treatments with variations in treatment timing. Despite the unforeseen challenges posed by the COVID-19 pandemic, our results indicate positive and statistically significant effects of the program.