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Export credit guarantees, moral hazard and exports quality

Garcia-Alonso, Maria D C, Levine, Paul, Morga, Antonia (2004) Export credit guarantees, moral hazard and exports quality. Bulletin of Economic Research, 56 (4). pp. 311-327. ISSN 0307-3378. (doi:10.1111/j.1467-8586.2004.00206.x) (KAR id:9507)

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Official URL:
https://doi.org/10.1111/j.1467-8586.2004.00206.x

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
DOI/Identification number: 10.1111/j.1467-8586.2004.00206.x
Subjects: H Social Sciences
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Maria Garcia-Alonso
Date Deposited: 07 Oct 2008 09:24 UTC
Last Modified: 16 Nov 2021 09:48 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/9507 (The current URI for this page, for reference purposes)
Garcia-Alonso, Maria D C: https://orcid.org/0000-0002-4457-3332
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