Preferential Credit and Insurance as Means to Promote Exports

Bruce Fitzgerald and Terry Monson

The World Bank Research Observer, 1989, vol. 4, issue 1, 89-114

Abstract: Rationales for preferential export credit and export credit insurance are reviewed and several countries' programs are examined to determine if these preferential programs are appropriate export promotion instruments for developing countries. Market failure is the most compelling rationale for their introduction but these arguments have not been well articulated and there is not systematic analysis of the costs of alternative government responses. Industrial countries' programs have histories of subsidy while developing countries' preferential programs have not been significant factors in stimulating exports. Copyright 1989 by Oxford University Press.

Date: 1989
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