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Export Credit Subsidies

Author

Listed:
  • Jacques Mélitz

    (School of Management & Languages - HWU - Heriot-Watt University [Edinburgh])

  • Patrick Messerlin

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

Suggested Citation

  • Jacques Mélitz & Patrick Messerlin, 1987. "Export Credit Subsidies," Post-Print hal-03393236, HAL.
    • Handle: RePEc:hal:journl:hal-03393236
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    Cited by:

    1. Filip Abraham & Gerda Dewit, 2000. "Export Promotion Via Official Export Insurance," Open Economies Review, Springer, vol. 11(1), pages 5-26, January.
    2. Fabrice Defever & Alejandro Riano & Gonzalo Varela, 2020. "Evaluating the impact of export finance support on firm-level export performance: Evidence from Pakistan," Discussion Papers 2020/05, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    3. Christoph Moser & Thorsten Nestmann & Michael Wedow, 2008. "Political Risk and Export Promotion: Evidence from Germany," The World Economy, Wiley Blackwell, vol. 31(6), pages 781-803, June.

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