Export Credit Subsidies

Jacques Melitz and Patrick Messerlin ()

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Abstract: Many governments have resorted to export credit subsidies in recent years in attempts to increase demand and improve the current account. Such arrangements need not necessarily work. The authors investigate the macroeconomic case for export credit subsidies and find that some temporary benefits can be gained if a larger appreciation of the exchange rate is permitted during the initial stages of the program. Evidence of the effect of export credits on French industry is also presented in some detail. Weighing up macroeconomic benefits against macroeconomic costs the authors conclude that the case for export credit subisidies is not persuasive

Date: 1987-04
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Citations: View citations in EconPapers (4)

Published in Journal of Economic Policy Reform, 1987, 2 (4), pp.149 - 175

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03393236

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