Actual Problems of
Economics and Law




DOI: 10.21202/1993-047X.11.2017.1.67-78

скачать PDF

Authors :
1. Timur R. Urumov, researcher,
Scientific-Research Institute for Finance

Efficiency of state financial support of export activity of small and medium businesses

Objective: to assess the effectiveness and role of state financial support of export activities of small and medium enterprises.

Methods: regression analysis, abstract-logical method, method of comparison.

Results: the need is identified to evaluate the impact of state programs of export support on the results of export operations, as a mechanism for assessing the efficiency of public spending in this area. The institutions are analyzed of state support of export of small and medium businesses production in the USA and India. It is revealed that in the US the main tool of support are export credits and guarantees, while in India the emphasis is on the promotion of products to the world markets. To assess the effectiveness of public expenditure on export support, the data were collected and systematized on the total volume of export and the costs of its support in the United States and India. The project revealed the presence of a time lag between these indices. When building
a regression model, the method of least squares was applied, on the basis of which three hypotheses were investigated, namely those taking into account and not taking into account the presence of the time lag between variables. As a result of constructing the model, it was found that in the U.S. the increase in budget spending on export support to $1mln leads to an increase in export volume to $2mln. In India the corresponding figure was $10mln. The analysis of the Russian practice of the state support of export of the small and medium businesses production showed a lack of systematic approach and poor development of the small business sector compared to the studied countries.

Scientific novelty: the positive relationship was revealed between the costs of exports support and export sales in the United States and India. The necessity was grounded of state the financial support of export activities of small and medium enterprises in Russia, as well as product promotion through sectoral cooperation, insurance and export credits.

Practical significance: the results of the study can be used by government institutions to support small and medium enterprises in the formation of policy on the provision of financial assistance to small and medium enterprises and on stimulation of their export activities.

Keywords :

Economics and national economy management; Small and medium businesses; Government financial support of export; Efficiency of government spending

Bibliography :

1. Rosson, C., Hammig, M., Jones, J. Foreign market promotion programs: An analysis of promotion response for apples, poultry, and tobacco, Agribusiness, 1986, vol. 2, No. 1, pp. 33–42.
2. Coughlin, C. C., Cartwright, P. A. An examination of state foreign export promotion and manufacturing exports, Journal of Regional Science, 1987, vol. 27, No. 3, pp. 439–449.
3. Armah, B. K., Epperson, J. E. Export demand for US orange juice: impacts of US export promotion programs, Agribusiness, 1997, vol. 13, No. 1, pp. 1–10.
4. Akyol, A., Akehurst, G. An investigation of export performance variations related to corporate export market orientation, European Business Review, 2003, vol. 15, No. 1, pp. 5–19.
5. Adhikari, M., Paudel, L., Houston, J. E., Paudel, B. N. Measuring the Impacts of US Export Promotion Program for Wheat in Selected Importing Regions, 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama: conference proceedings, Southern Agricultural Economics Association, 2003.
6. Kaiser, H., Liu, D. An Econometric Analysis of California Raisin Export Promotion, Econometric Analysis of California Raisin Export Promotion, 2000.
7. Investing in Trade Promotion Generates Revenue. A study of Trade Promotion Organizations, Geneva, Switzerland: International Trade Centre, 2016. 50 p.
8. Small and Medium-sized Enterprises: US and EU Export Activities, and Barriers and Opportunities Experienced by US Firms: Investigation: United States International Trade Commission et al., 2010. 314 p.
9. Spletukhov, Yu. A. Ensuring export credits: foreign experience, Finansovyi zhurnal, 2014, vol. 21, No. 3, pp. 150–160 (in Russ.).
10. Grover, A., Suominen, K. Summary–State of SME Finance in the United States, 2014.

11. Das, K. SMEs in India: issues and possibilities in times of globalisation, Asian SMEs and Globalization, ERIA Research Project Report, 2007, No. 5, pp. 69–97.
12. Bondarenko, V. A. Development of small businesses in India in the form of production clusters, 2010, available at: http://www.vneshmarket.ru/content/document_r_C15C2375-1FDF-479F-A2B5-397038A8A6E7.html (access date: 19.12.2016) (in Russ.).
13. Dickey, D. A., Fuller, W. A. Distribution of the estimators for autoregressive time series with a unit root, Journal of the American statistical association, 1979, vol. 74, No. 366a, pp. 427–431.
14. Phillips, P. C., Perron, P. Testing for a unit root in time series regression, Biometrika, 1988, vol. 75, No. 2, pp. 335–346.
15. Kwiatkowski, D., Phillips, P. C., Schmidt, P., Shin, Y. Testing the null hypothesis of stationarity against the alternative of a unit root: How sure are we that economic time series have a unit root?, Journal of econometrics, 1992, vol. 54, No. 1–3, pp. 159–178.
16. Akaike, H. Fitting autoregressive models for prediction, Annals of the institute of Statistical Mathematics, 1969, vol. 21, No. 1, pp. 243–247.
17. Akaike, H. A new look at the statistical model identification, IEEE transactions on automatic control, 1974, vol. 19, No. 6, pp. 716–723.
18. Schwarz, G. Estimating the dimension of a model, The annals of statistics, 1978, vol. 6, No. 2, pp. 461–464.
19. Engle, R. F., Granger, C. W. Co-integration and error correction: representation, estimation, and testing, Econometrica: journal of the Econometric Society, 1987, pp. 251–276.
20. Johansen, S. Statistical analysis of cointegration vectors, Journal of economic dynamics and control, 1988, vol. 12, No. 2, pp. 231–254.
21. Durbin, J., Watson, G. S. Testing for serial correlation in least squares regression: I, Biometrika, 1950, vol. 37, No. 3/4, pp. 409–428.
22. Durbin, J., Watson, G. Testing for serial correlation in least squares regression. III, Biometrika, 1971, vol. 58, No. 1, pp. 1–19.
23. Durbin, J., Watson, G. S. Testing for serial correlation in least squares regression. II, Biometrika, 1951, vol. 38, No. 1/2, pp. 159–177.
24. Podguzov, N. R. The main potential of export growth lies in the sphere of export by small and medium businesses, 2015, available at: http://economy.gov.ru/minec/about/structure/depmb/2015111210 (access date: 15.08.2016) (in Russ.).
25. Obukhova, E., Ogorodnikov, E., Remizov, M. Overcoming barriers, Ekspert, 2015, vol. 9, pp. 36–41 (in Russ.).
26. Belousova, T. A. Modern practice of ensuring export credits in EU countries, Finansovyi zhurnal, 2015, vol. 25, No. 3, pp. 91–97 (in Russ.).
27. Suominen, K. State of SME Finance in the United States 2014: Year of New Providers, 2014, available at: https://katisuominen.wordpress. com/2014/02/05/187/ (access date: 13.09.2016).
28. Goya, M. SMEs employ close to 40 % of India's workforce, but contribute only 17 % to GDP, available at: http://economictimes.indiatimes.com/small-biz/policy-trends/smes-employ-close-to-40-of-indias-workforce-but-contribute-only-17-to-gdp/articleshow/20496337.cms?intenttarget=no (access date: 13.09.2016).

Citation :

Urumov T. R. Efficiency of state financial support of export activity of small and medium businesses, Actual Problems of Economics and Law, 2017, vol. 11, No. 1, pp. 67–78 (in Russ.). DOI: 10.21202/1993-047X.11.2017.1.67-78

Type of article : The scientific article

Date of receipt of the article :

Date of adoption of the print :

Date of online accommodation :