Scandinavian Working Papers in Economics
Ratio Working Papers,
The Ratio Institute
No 316: Mitigating Information Frictions in Trade: Evidence from Export Credit Guarantees
Magnus Lodefalk (), Aili Tangz Sofia Tano (), Natasha Agarwal () and Zheng Wang ()
Additional contact information
Magnus Lodefalk: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Aili Tangz Sofia Tano: Örebro University
Natasha Agarwal: World Education Foundation
Zheng Wang: University of Nottingham
Abstract: Information frictions make non-simultaneous exchange risky, particularly across borders. Therefore, many countries insure cross-border exchange. We investigate the effects on firm trade, jobs, value added and productivity, using uniquely detailed, comprehensive and longitudinal transaction-level Swedish data on insurance and granular data on exporters and foreign buyers. For identification, we employ matching and differencein- difference and fuzzy regression discontinuity estimators and exploit a quasi-natural experiment. We find strikingly heterogeneous effects across firm size and response variables. The strongest positive effects are for small traders and new users. Overall, the evidence suggests a causal link from export insurance to firm performance.
Keywords: Information friction; Institutions; Export insurance; Credit Constraints; Trade; Firm Performance
JEL-codes: D22; F14; F36; G28; G32; H81; L25
66 pages, First version: December 27, 2018. Revised: April 23, 2021. Earlier revisions: November 13, 2019, April 23, 2021.
Full text files
ratio-working-paper-no.-316_v2.pdfFull text
Questions (including download problems) about the papers in this series should be directed to Martin Korpi ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:ratioi:0316This page generated on 2024-09-13 22:16:55.