We wish to thank Erwin Marchhart from Oesterreichische Kontrollbank (OeKB) for helpful comments on an earlier draft. This paper has also greatly benefited from the comments by an anonymous referee. Ursula Glauninger and Irene Langer provided valuable research assistance.
Article first published online: 24 JUN 2013
© 2013 John Wiley & Sons Ltd
The World Economy
Volume 36, Issue 9, pages 1115–1130, September 2013
How to Cite
Badinger, H. and Url, T. (2013), Export Credit Guarantees and Export Performance: Evidence from Austrian Firm-level Data. World Economy, 36: 1115–1130. doi: 10.1111/twec.12085
- Issue published online: 6 SEP 2013
- Article first published online: 24 JUN 2013
This paper provides an economic assessment of export credit guarantee commitments by the Austrian export credit agency, using firm-level data on a cross-section of Austrian exporting firms for the year 2008. In a first step, we explore various determinants of export guarantee usage. Results suggest that firm size, being part of a multinational enterprise, exposure to revenue risk and R&D intensity are important factors. In a second step, we investigate the effects of export guarantees on export performance. Identification is achieved using as instruments the exogenous determinants of export guarantee usage identified in the first step. We find that there are economically and statistically significant effects of export credit guarantee usage on firm-specific export performance ranging from some 80 to 100 per cent compared with the control group of non-users.