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

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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.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages55
Publication statusPublished - 26 Jul 2021
SeriesEconomics Working Papers
Number2021-09

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