Trade Promotion Europe (TPE) is delighted to share the findings of our latest Impact Study, conducted with the University of Geneva. The key takeaways, identified in collaboration with the International Trade Centre, highlight the study’s most significant insights.
This study provides key insights into the economic benefits of export promotion, focusing on its impact on employment and GDP growth across TPE member countries.
Key Findings
📌 Strong Economic Impact
- A 1% increase in a Trade Promotion Organization’s (TPO) budget leads to a 0.069% increase in export growth and a 0.090% increase in GDP per capita.
- Every €1 spent by a TPE TPO generates €172 in export revenue and €396 in GDP growth, showcasing the high return on investment of trade promotion.
📌 Mechanisms Behind High Returns
- TPO activities such as matchmaking events, trade fairs, and market research help businesses secure high-value export deals, creating a multiplier effect across industries.
- Export promotion fosters innovation and productivity, driving growth in both exports and domestic sales.
📌 Regional and Global Benefits
- Joint TPO initiatives, such as cross-border trade missions and collaborative programs, amplify economic benefits, creating win-win scenarios for neighbouring countries.
- Spillover effects show that when one country increases its TPO budget, regional economic performance also improves, highlighting the need for coordinated strategies.
📌 Who Benefits the Most?
- Smaller economies experience the greatest relative boosts from TPO investments, helping them become more competitive in global trade.
- Returns remain consistent across all budget sizes, meaning both small and large TPOs benefit equally from additional funding.
📌 Sustained Effectiveness Over Time
- Policymakers can confidently commit to long-term TPO funding, knowing that the benefits are steady regardless of economic fluctuations.
- The impact of TPO investments has remained stable from 2005 to 2024, proving that trade promotion delivers predictable and reliable economic gains.
Why It Matters
These results confirm that investments in trade promotion yield substantial economic benefits. Beyond boosting exports, TPOs contribute to job creation and overall economic well-being, reinforcing the need for continued support and collaboration among European trade promotion agencies.
⬇️ Read the full study
