The Export—Import Bank

The Export—Import Bank

An Economic Analysis

1st Edition - January 28, 1983

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  • Author: David P. Baron
  • eBook ISBN: 9781483268538

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Description

The Export—Import Bank: An Economic Analysis provides a critical analysis of the export financing issue and the Eximbank's performance in fulfilling its congressional mandate. The analysis is based on extensive interviews with Eximbank officials and on numerous internal documents in addition to published materials. This book is composed of 11 chapters that reflect the three perspectives on Eximbank’s performance. First, an analysis of the need for such financing is presented in conjunction with an assessment of the competitiveness of U.S. programs compared with those provided by other nations. Second, Eximbank performance is evaluated in terms of the cost of its programs, their potential welfare impacts, and the likely impact on U.S. exports. Third, an evaluation is provided of the Eximbank's decision making and its methodology for evaluating the impact of its direct credit program. Recommendations are made concerning U.S. export financing objectives, strategies for achieving those objectives, and Eximbank administrative procedures. This work also provides an economic analysis of Eximbank financing and includes a case study of Eximbank decision making in the granting of a $200 million aircraft credit to Ansett Airlines of Australia. This book will prove useful to those who are interested in international trade and finance, as well as those concerned more broadly with government intervention in markets.

Table of Contents


  • Preface

    1. Eximbank: The Controversy, Its Mandate, and Its Programs

    I. The Controversy

    II. The Origin and Functions of the Eximbank

    III. The Principal Features of the Export-Import Bank Act of 1945

    IV. Eximbank Programs

    V. Related Organizations

    VI. International Agreements Pertaining to Export Credits

    VII. Policy Issues Associated with the Eximbank

    References

    2. A Review of the Bank's Activities: 1970-1981

    I. Introduction

    II. Eximbank Performance

    III. PEFCO

    IV. Conclusions

    References

    3. The Economic Justification for the Programs of the Eximbank

    I. Introduction

    II. Capital Market Imperfections

    III. Capital Market Deficiencies

    IV. Promotion of Exports, the Balance of Payments, and Employment

    V. Maintaining U.S. Product Dominance

    VI. Concessionary Export Financing as Aid

    VII. Meeting Foreign-Subsidized Export Financing

    VIII. Conclusions

    References

    4. The Supply and Demand for Government-Supported Export Financing

    I. Introduction

    II. The Demand for and Supply of Government Financing of International Trade

    III. The Response to Challenges to the Eximbank

    IV. Conclusions

    References

    5. The Competitiveness of Eximbank Programs

    I. Introduction

    II. Official Export Financing Programs of Six Major Trading Countries

    III. The Level of Official Export Financing

    IV. Analysis of the Disposition of Preliminary Commitments

    V. Surveys of Exporters

    VI. Conclusions

    Appendix 5.A. The Export Financing Programs of Six Other Countries

    References

    6. The Subsidy Provided by Eximbank Financing

    I. Introduction

    II. Estimates of the Subsidy

    III. The Subsidy Provided by an Eximbank Credit

    IV. Estimation of the Subsidy

    V. Analysis of the Direct Credit Data

    VI. Conclusions

    Appendix 6.A. Derivation of the Subsidy Provided by an Eximbank Credit and the Blended Interest Rate on a Credit

    Appendix 6.B. Eximbank Country Risk Groups

    References

    7. The Welfare Consequences of Concessionary Export Financing

    I. Introduction

    II. The Nature of the Welfare Effects of Concessionary Export Financing

    III. Estimates of the Net Cost of Eximbank Concessionary Financing

    IV. Conclusions

    Appendix 7.A. The Discount Elasticity of the Export Price

    References

    8. Additionality and Its Measurement

    I. Introduction

    II. The Treasury Study of FY1978 Eximbank-Supported Exports

    III. The Eximbank Studies

    IV. A Critique of the Additionality Studies

    V. The Information Problem

    VI. An Alternative Approach to the Measurement of Additionality

    References

    9. A Test of Additionality

    I. Introduction

    II. Additionality and Aircraft Financing

    III. The Bank's Aircraft Financing Policy

    IV. The FY1979-1981 Aircraft Credits

    V. The Model and Hypotheses Tested

    VI. Results

    VII. Conclusions

    VIII. An Extension of the Methodology to All FY1980-1981 Credits

    Appendix 9.A. Aircraft Export Financing, FY1979

    Appendix 9.B. Aircraft Export Financing, FY1980

    Appendix 9.C. Aircraft Export Financing, FY1981

    References

    10. The Ansett Case

    I. Introduction

    II. The Aircraft Offers

    III. The Airbus Financing Offer

    IV. The Eximbank Board Meetings

    V. Analysis of the Subsidy Provided by the Eximbank Financing

    VI. Analysis of the Bank's Decision Making in the Ansett Case

    VII. Implications for the Bank's Decision-Making Process

    Appendix 10.A. Calculation of the U.S. Dollar Interest Rate Equivalent to the Airbus Financing Offer

    Appendix 10.B. Calculation of the Subsidy on the 727 and 737 Financing

    References

    11. The Future Role of the Eximbank

    I. Introduction

    II. U.S. Objectives and the Eximbank

    III. Achieving Export Financing Objectives

    IV. The Operation of the Bank in Its Present Form

    V. Conclusions

    References

    Index

Product details

  • No. of pages: 356
  • Language: English
  • Copyright: © Academic Press 1983
  • Published: January 28, 1983
  • Imprint: Academic Press
  • eBook ISBN: 9781483268538

About the Author

David P. Baron

About the Editor

Karl Shell

Affiliations and Expertise

Cornell University

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