Abstract:
Internationalisation has required companies to look outside their domestic markets
and also utilize opportunities internationally. Companies are engaging in export
activities to pursue greater market share and growth in profits. Countries also benefit
from increased exports by earning more foreign exchange and creating more
employment opportunities. Therefore governments and other private entities are
providing export promotion programmes which are designed to encourage
companies to promote the exports of goods and services in foreign markets.
When assistance to promote exports is provided, it is important to evaluate how
effectively the limited government resources are spent and applied. Such evaluation
of export promotion programmes will enable public policy-makers to expand those
programmes that are more effective.
The aim of this study was to determine the Return on Investment (ROI) of some of
the export promotion programmes provided by the Department of Trade and Industry
(DTI). The relationship between the total cost of export assistance and actual export
sales for national pavilions and trade missions were evaluated. These two
programmes are the largest in the DTl's Export Marketing and Investment Assistance
(EMIA) scheme. Evaluation measures or criteria which have been successfully
implemented by four other countries were examined in order to make practical
recommendations to the DTI on how to implement appropriate criteria for the
evaluation of these export promotion programmes.
The results of this study yielded that the ROI per sector for national pavilions and
trade missions produced positive results. For sustainable export growth, however,
the DTI will have to develop new criteria for the evaluation of export promotion
programmes. It should also focus more on the manufacturing and services industries
to increase the export volumes and obtain higher ROI of government spending in
export promotion programmes.
