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Export Credit Guarantees: Direct Effects on the Treated and Spillovers to their Suppliers

Author

Listed:
  • Ina C. Jäkel

    (Department of Economics and Business Economics, Aarhus University)

Abstract

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.

Suggested Citation

  • Ina C. Jäkel, 2021. "Export Credit Guarantees: Direct Effects on the Treated and Spillovers to their Suppliers," Economics Working Papers 2021-09, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2021-09
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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