Does the US EXIM Bank Really Promote US Exports?




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Peer reviewed



This paper investigates the impact of US Export-Import Bank (EXIM) on US exports particularly in the wake of international competition from foreign national export credit agencies (ECAs). We employ a gravity framework on a country-industry-year-level panel dataset that matches EXIM authorizations with US bilateral exports. Our results depict the general ineffectiveness of the Bank in promoting exports within and across industries. Some heterogeneities behind the general finding are also uncovered: industries other than aerospace parts and products are more likely to benefit from EXIM authorizations, and EXIM authorizations to larger businesses seem to be more effective in encouraging exports. Furthermore, we find no evidence that explains the role of EXIM in encouraging US exports by offsetting foreign ECA competition. These results are neither affected by competing countries’ membership to the OECD Arrangement nor by the size of American firms that received EXIM support. Our results cast doubt on the ubiquitously positive claims made by the Bank and its supporters, yet also provide policy lessons for countries that are either in the inception stages of establishing their own ECAs or are now placing greater importance on ECA financing in encouraging exports.


The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.


Trade credits, EXIM, Export competition, Value chain, US


Agarwal, N. and Wang, Z. (2017) Does the US EXIM Bank Really Promote US Exports? The World Economy, 41 (5), pp. 1378-1414


Research Institute

Institute for Applied Economics and Social Value (IAESV)