Prague Economic Papers 2022, 31(3):217-235 | DOI: 10.18267/j.pep.803

Providing Export Credit Support Right: Consequences for Public Budgets

Mikuláš Pýcha ORCID...
Prague University of Economics and Business, Faculty of Finance and Accounting, Prague, Czech Republic

This analysis tries to address the problem of the insufficiency of premium rates used by export credit agencies. This paper aims to answer why and how states should run agencies that may create losses. We see that each supported exporter brings some other benefits to the public budget, and we try to propose how it could be measured. This paper therefore focuses on benefits and costs of the domestic economy. This analysis aims to develop a model that calculates the impacts of each supported export project. The results must be comparable between projects so that projects can be ranked and decisions made on which ones should receive support under current capacity restraints. The current state of knowledge has been analysed, and little attention has been paid to this microeconomic area of export support. The model structure also helps us understand why governments tend to maintain export credit agencies even though they may be temporarily loss-making.

Keywords: State support, export credit, OECD Consensus, export credit agency, public finance
JEL classification: G22, G29, H81

Received: January 4, 2022; Revised: February 23, 2022; Accepted: April 1, 2022; Prepublished online: May 12, 2022; Published: September 22, 2022  Show citation

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Pýcha, M. (2022). Providing Export Credit Support Right: Consequences for Public Budgets. Prague Economic Papers, 31(3-4), 217-235. doi: 10.18267/j.pep.803
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