Export Credit Gurantees, Moral Hazard and Exports Quality
AbstractWe analyse the role played by Export Credit Guarantees (ECGs) to encourage exports to developing countries. The existence of moral hazard on the side of the firm is introduced. We show that the inability of the exporter's government to verify the actual quality of the product will limit its ability to encourage trade through ECGs, once the coverage provided goes beyond a certain threshold. This result provides a rationale behind the limited coverage on ECGs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0402.
Date of creation: Jan 2004
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/
Other versions of this item:
- María del Carmen García-Alonso & Paul Levine & Antonia Morga, 2004. "Export Credit Guarantees, Moral Hazard and Exports Quality," Bulletin of Economic Research, Wiley Blackwell, vol. 56(4), pages 311-327, October.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-04 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gary S. Becker, 1982. "Competition Among Pressure Groups for Political Influence," University of Chicago - George G. Stigler Center for Study of Economy and State 23, Chicago - Center for Study of Economy and State.
- Dalia Marin & Monika Schnitzer, 1998.
"Economic incentives and international trade,"
European Economic Review,
Elsevier, vol. 42(3-5), pages 705-716, May.
- Marin, Dalia & Schnitzer, Monika, 1997.
"The Economic Institution of International Barter,"
CEPR Discussion Papers
1658, C.E.P.R. Discussion Papers.
- Dewit, Gerda, 2001. "Intervention in risky export markets: insurance, strategic action or aid?," European Journal of Political Economy, Elsevier, vol. 17(3), pages 575-592, September.
- Laffont, Jean-Jacques, 1995. "Regulation, moral hazard and insurance of environmental risks," Journal of Public Economics, Elsevier, vol. 58(3), pages 319-336, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emma Robinson).
If references are entirely missing, you can add them using this form.