The Spending–Investment Dilemma in Provincial Trade Promotion Policies: Evidence from International Trade Fairs in Entre Ríos

Abstract

This paper analyzes the effectiveness of international trade fairs as a subnational public policy instrument, using the case of the province of Entre Ríos, Argentina, in 2024. Combining theoretical review and empirical evidence, it examines the expenditure–investment dilemma faced by provincial governments when financing firms’ participation in international promotion events. The study systematizes data from eight fairs and trade missions involving 59 firms, and proposes a two-dimensional matrix to classify events according to their economic impact (quotations, sales, public spending efficiency) and strategic impact (learning, networking, incorporation of new exporters). Results show that fairs generate heterogeneous and deferred returns: while

some, such as Fruit Attraction Madrid or SIAL Paris, deliver immediate economic outcomes, others like Gulfood Dubai or regional missions play a key role in export learning and maturation. Six months after the events, 43% of firms had achieved actual sales and 61% maintained active business links. The study concludes that fairs should be viewed less as promotional expenditure and more as strategic investments in relational and cognitive capital that strengthen the export base and competitive capacities of the territory.