Export Credit Guarantees: Direct Effects on the Treated and Spillovers to their Suppliers
Ina C. Jäkel ()
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Ina C. Jäkel: Department of Economics and Business Economics, Aarhus University, Postal: Fuglesangs Alle 4, DK-8210 Aarhus V, Denmark
Economics Working Papers from Department of Economics and Business Economics, Aarhus University
Most countries use export credit agencies (ECAs) to mitigate export-related credit constraints. We evaluate the direct effects of this policy on treated firms, as well as spillovers to non-treated firms. Using data from the Danish ECA and applying a difference-in-difference matching estimator, we find large positive effects on total sales, exports and purchases of treated firms. Next, we derive new measures for horizontal and backward spillovers based on production and purchase statistics. Our results show that upstream firms benefit from EKF guarantees issued to their potential customers, but that domestic producers are not harmed by guarantees given to their competitors.
Keywords: Public export credit guarantees; Spillover effects; Export finance (search for similar items in EconPapers)
JEL-codes: F12 F14 L15 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2021-09
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