Publication: The financial cost of official export credit insurance programs of industrialized countries: an analysis
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Publication date
1995-01
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Tutors
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Impact
Export
Abstract
This paper seeks to clarify and evaluate the role and cost of public subsidies of Export Credit Insurance Programs in the OECD countries. Export finance is considered to be subsidized whenever credit or insurance is provided on bener tenns than is available in a competitive market. We use this definition to estimate OECD insurance subsidies and both absolute figures and so called rates of subsidization, related to insured and total exports, are presented. Assessing the effectiveness of these export promotion services is, however, a more complex issue. In spite of the apparently low rates of subsidization, there are several reasons for not disregarding the possible competitive effects of export insurance subsidies thoughtlessly as some countries have viewed with growing concern the funding and public involvement in export fmance as a new fonn of unfair competition in the international markets.
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Keywords
Export finance, Export promotion, Public subsidies, Credit insurance