Who Benefits From The Export-Import Bank Aid? /
Benmelech, Efraim.
Who Benefits From The Export-Import Bank Aid? / Efraim Benmelech, Joao Monteiro. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w31562 . - Working Paper Series (National Bureau of Economic Research) no. w31562. .
August 2023.
We study the effectiveness of government aid to exporters by exploring an exogenous shock that affected the ability of the Export-Import Bank of the United States (EXIM) to provide aid to U.S. exporters through loan guarantees to importers. We focus on Boeing, the largest individual recipient of aid. We find that Boeing sales declined only modestly - despite Boeing's significant reliance on EXIM for export credit. Moreover, we find that this decline is driven by financially constrained airlines or by airlines operating in countries with underdeveloped financial systems. We show that airlines in developed countries were easily able to substitute EXIM guaranteed loans for private credit and thus could still purchase Boeing aircraft despite the EXIM shock. Our results are consistent with the view that government-sponsored export credit is mostly relevant for importers in countries with underdeveloped financial systems, which represent a relatively small share of total EXIM aid.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Empirical Studies of Trade
International Lending and Debt Problems
Government Policy and Regulation
Capital Budgeting • Fixed Investment and Inventory Studies • Capacity
Air Transportation
Who Benefits From The Export-Import Bank Aid? / Efraim Benmelech, Joao Monteiro. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w31562 . - Working Paper Series (National Bureau of Economic Research) no. w31562. .
August 2023.
We study the effectiveness of government aid to exporters by exploring an exogenous shock that affected the ability of the Export-Import Bank of the United States (EXIM) to provide aid to U.S. exporters through loan guarantees to importers. We focus on Boeing, the largest individual recipient of aid. We find that Boeing sales declined only modestly - despite Boeing's significant reliance on EXIM for export credit. Moreover, we find that this decline is driven by financially constrained airlines or by airlines operating in countries with underdeveloped financial systems. We show that airlines in developed countries were easily able to substitute EXIM guaranteed loans for private credit and thus could still purchase Boeing aircraft despite the EXIM shock. Our results are consistent with the view that government-sponsored export credit is mostly relevant for importers in countries with underdeveloped financial systems, which represent a relatively small share of total EXIM aid.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Empirical Studies of Trade
International Lending and Debt Problems
Government Policy and Regulation
Capital Budgeting • Fixed Investment and Inventory Studies • Capacity
Air Transportation