Export credit guarantees, moral hazard and exports quality

Garcia-Alonso, Maria D C and Levine, Paul and Morga, Antonia (2004) Export credit guarantees, moral hazard and exports quality. Bulletin of Economic Research, 56 (4). pp. 311-327. ISSN 0307-3378. (Full text available)

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Abstract

We analyze the role played by Export Credit Guarantees (ECGs) to encourage exports to developing countries. The existence of moral hazard on the side of the …rm is introduced. We show that the inability of the exporter’s government to verify the actual quality of the product will limit its ability to encourage trade through ECGs, once the coverage provided goes beyond a certain threshold. This result provides a rationale behind the limited coverage on ECGs.

Item Type: Article
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Maria Garcia-Alonso
Date Deposited: 07 Oct 2008 09:24
Last Modified: 30 Jan 2015 10:28
Resource URI: https://kar.kent.ac.uk/id/eprint/9507 (The current URI for this page, for reference purposes)
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