IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v2y2022i6d10.1007_s43546-022-00223-4.html
   My bibliography  Save this article

Do transactions to tax havens and corruption attract officially supported export credit? Evidence from three European export credit agencies

Author

Listed:
  • Dirk-Jan Koch

    (Radboud University)

Abstract

OECD governments provide billions in export credit annually in support of national exporters to developing countries. Linked to the OECD-recommendation on anti-bribery and export credits, the research focuses on whether support of the export credit agencies is dependent on the corruption levels and so called ‘tax haven’ status of the countries to which the exports are destined. We compose a unique panel data set based on data on the export credit agencies of the United Kingdom, the Netherlands and Sweden. We find that corruption levels in the countries to which the exports are destined do not have an influence on the presence and level of export credits. Conversely, whether the destination country of the export is a ‘tax haven’ is important: British and Dutch agencies are significantly more likely to provide export credit for export transactions to tax havens than for non-tax-havens, all else being equal. This declines for the Netherlands over time. The results indicate that the chances that the United Kingdom Export Finance supports transactions with EC to a tax haven are 12 times more likely than for a non-tax haven countries, all else being equal. In the Netherlands, this is 3 times more likely. Based on the findings, we recommend that export credit agencies and their financial backers be extra vigilant in their due diligence policies, especially with respect to ‘tax havens’ and make these policies publicly available.

Suggested Citation

  • Dirk-Jan Koch, 2022. "Do transactions to tax havens and corruption attract officially supported export credit? Evidence from three European export credit agencies," SN Business & Economics, Springer, vol. 2(6), pages 1-21, June.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:6:d:10.1007_s43546-022-00223-4
    DOI: 10.1007/s43546-022-00223-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-022-00223-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-022-00223-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kristen Hopewell, 2019. "How Rising Powers Create Governance Gaps: The Case of Export Credit and the Environment," Global Environmental Politics, MIT Press, vol. 19(1), pages 34-52, February.
    2. Hyelin Choi & Kyunghun Kim, 2021. "Effect of Export Credit Insurance on Export Performance: An Empirical Analysis of Korea," Asian Economic Journal, East Asian Economic Association, vol. 35(4), pages 413-433, December.
    3. Ali Polat & Mehmet Yesilyaprak, 2017. "Export Credit Insurance and Export Performance: An Empirical Gravity Analysis for Turkey," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 12-24, August.
    4. Marc Auboin & Martina Engemann, 2014. "Testing the trade credit and trade link: evidence from data on export credit insurance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(4), pages 715-743, November.
    5. Neumayer, Eric, 2002. "Is Good Governance Rewarded? A Cross-national Analysis of Debt Forgiveness," World Development, Elsevier, vol. 30(6), pages 913-930, June.
    6. Cooray, Arusha & Jha, Chandan Kumar & Panda, Bibhudutta, 2023. "Corruption and assortative matching of partners in international trade," European Journal of Political Economy, Elsevier, vol. 77(C).
    7. Chandan Jha & Bibhudutta Panda, 2017. "Individualism and Corruption: A Cross-Country Analysis," Economic Papers, The Economic Society of Australia, vol. 36(1), pages 60-74, March.
    8. repec:ces:ifowps:_116 is not listed on IDEAS
    9. Christian Bjørnskov & Martin Rode, 2020. "Regime types and regime change: A new dataset on democracy, coups, and political institutions," The Review of International Organizations, Springer, vol. 15(2), pages 531-551, April.
    10. Metzger, Laura & Nunnenkamp, Peter & Mahmoud, Toman Omar, 2010. "Is Corporate Aid Targeted to Poor and Deserving Countries? A Case Study of Nestlé's Aid Allocation," World Development, Elsevier, vol. 38(3), pages 228-243, March.
    11. Dirk-Jan Koch & Marloes Verholt, 2020. "Limits to learning: the struggle to adapt to unintended effects of international payment for environmental services programmes," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 20(3), pages 507-539, September.
    12. Pamela Blackmon, 2014. "Determinants of developing country debt: the revolving door of debt rescheduling through the Paris Club and export credits," Third World Quarterly, Taylor & Francis Journals, vol. 35(8), pages 1423-1440, September.
    13. Kristen Hopewell, 2021. "Power transitions and global trade governance: The impact of a rising China on the export credit regime," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 634-652, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agarwal, Natasha & Chan, Jackie M.L. & Lodefalk, Magnus & Tang, Aili & Tano, Sofia & Wang, Zheng, 2023. "Mitigating information frictions in trade: Evidence from export credit guarantees," Journal of International Economics, Elsevier, vol. 145(C).
    2. Ben Jelili Riadh, 2020. "Do Default Loss Risks Matter for Arab Exports? Evidence from a Gravity Modelling Approach," Review of Middle East Economics and Finance, De Gruyter, vol. 16(3), pages 1-22, December.
    3. Philipp Censkowsky & Paul Waidelich & Igor Shishlov & Bjarne Steffen, 2025. "Quantifying the shift of public export finance from fossil fuels to renewable energy," Nature Communications, Nature, vol. 16(1), pages 1-13, December.
    4. Hyelin Choi & Kyunghun Kim, 2021. "Effect of Export Credit Insurance on Export Performance: An Empirical Analysis of Korea," Asian Economic Journal, East Asian Economic Association, vol. 35(4), pages 413-433, December.
    5. Leanora Alecia Brown & Jorge Martinez-Vazquez, 2015. "International Debt Forgiveness: Who Gets Picked and Its Effect On The Tax Effort Of Developing Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1504, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier, 2024. "Do China and Russia undermine Western sanctions? Evidence from DiD and event study estimation," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 132-160, February.
    7. Marc Auboin & Alisa DiCaprio, 2017. "Why Do Trade Finance Gaps Persist: Does it Matter for Trade and Development?," CESifo Working Paper Series 6425, CESifo.
    8. Gutmann, Jerg & Metelska-Szaniawska, Katarzyna & Voigt, Stefan, 2024. "Leader characteristics and constitutional compliance," European Journal of Political Economy, Elsevier, vol. 84(C).
    9. Therese E. Zogo & Christophe M. Mbassi & Simplice A. Asongu, 2024. "Coup d’état and access to electricity in sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 24/019, African Governance and Development Institute..
    10. Kyunga Na & Young-Hee Kang & Yang Sok Kim, 2018. "The Effect of Corporate Governance on the Corruption of Firms in BRICs (Brazil, Russia, India & China)," Social Sciences, MDPI, vol. 7(6), pages 1-16, May.
    11. Jerg Gutmann & Katarzyna Metelska-Szaniawska & Stefan Voigt, 2024. "The comparative constitutional compliance database," The Review of International Organizations, Springer, vol. 19(1), pages 95-115, January.
    12. Dreher, Axel & Nunnenkamp, Peter & Thiel, Susann & Thiele, Rainer, 2010. "Aid allocation by German NGOs: Does the degree of public refinancing matter?," University of Göttingen Working Papers in Economics 92, University of Goettingen, Department of Economics.
    13. Aziz N. Berdiev & Brandon Gomes & James W. Saunoris, 2023. "Revisiting the nexus between globalisation and the shadow economy: Untying the influences of de jure versus de facto globalisation," The World Economy, Wiley Blackwell, vol. 46(1), pages 27-54, January.
    14. Xia, Ying & Chen, Muyang, 2023. "The Janus face of stateness: China's development-oriented equity investments in Africa," World Development, Elsevier, vol. 162(C).
    15. Berggren, Niclas & Bjørnskov, Christian, 2024. "Economic freedom and academic freedom across nations," Journal of Institutional Economics, Cambridge University Press, vol. 20, pages 1-1, January.
    16. Magnusson, Leandro M. & Tarverdi, Yashar, 2020. "Measuring governance: Why do errors matter?," World Development, Elsevier, vol. 136(C).
    17. Olayinka Oyekola & Sofia Johan & Rilwan Sakariyahu & Oluwatoyin Esther Dosumu & Shima Amini, 2023. "Political institutions, financial liberalisation, and access to finance: firm-level empirical evidence," Discussion Papers 2307, University of Exeter, Department of Economics.
    18. Dirk H M Akkermans, 2017. "Net profit flow per country from 1980 to 2009: The long-term effects of foreign direct investment," PLOS ONE, Public Library of Science, vol. 12(6), pages 1-28, June.
    19. Hileman, Garrick, 2012. "The seven mechanisms for achieving sovereign debt sustainability," Economic History Working Papers 42878, London School of Economics and Political Science, Department of Economic History.
    20. Graziano Abrate & Federico Boffa & Fabrizio Erbetta & Davide Vannoni, 2018. "Voters’ Information, Corruption, and the Efficiency of Local Public Services," Sustainability, MDPI, vol. 10(12), pages 1-22, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:2:y:2022:i:6:d:10.1007_s43546-022-00223-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.