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1 – 10 of over 13000Bob Jennekens and Andreas Klasen
This paper aims to draw attention to an urgent need for reform of the regulatory framework of the broader export credit system to ensure a new and comprehensive “safe haven” for…
Abstract
Purpose
This paper aims to draw attention to an urgent need for reform of the regulatory framework of the broader export credit system to ensure a new and comprehensive “safe haven” for officially supported export credits. The purpose is to analyse the complex debate on disciplines of the World Trade Organization (WTO) and the Organisation for Economic Co-operation and Development (OECD), creating a point of reference for future analysis of and debates around the “carve-out clause” of the Agreement on Subsidies and Countervailing Measures (ASCM) and a “safe haven” in a broader sense.
Design/methodology/approach
This paper takes inspiration from legal, economic and political science literature on subsidies and officially supported export credits, as well as on legal documents related to the WTO and the OECD. It examines the WTO subsidy and the OECD export credits framework, focusing on main legal and economic governance aspects. Then, it gives a critical analysis how “safe” a “safe haven” in a broader sense might be, assessing frictions of and solutions for the fundamentally different set of disciplines, limitations, financial instruments not covered by OECD regulations, as well as new challenges related to climate finance.
Findings
After assessing the challenges regarding the “carve-out clause” of the WTO subsidy framework and two tracks aiming to create a new “safe haven”, requirements for comprehensive disciplines for officially supported export credits are pointed out. Furthermore, several misunderstandings and mistakes appearing in the debate are clarified.
Research limitations/implications
Desktop research rather than empirical field work.
Practical implications
This paper creates awareness for governments and exporters how to deal with a complex system of interrelated disciplines. The question, how “safe” a “safe haven” in a broader sense can be, has not been resolved yet. Some authors focus on the WTO disciplines not taking into account the need for an effective matching procedure of the Arrangement on Officially Supported Export Credits (the Arrangement). Furthermore, the introduction of several new pre-export financing programmes and the growing significance of climate finance-related instruments for export credit agencies creates both opportunities and challenges. This paper can serve as a reference point for the academic debate and further research. This paper also offers newcomers to the topic a comprehensive overview.
Originality/value
Although the “carve-out clause” and the Arrangement have been much discussed, there is limited literature review structuring both existing and new aspects of the debate, assessing (dis)advantages of arguments and interpretations. This paper both adds to the corpus of literature about the ASCM, as well as the Arrangement, and takes this corpus as the object of its analysis.
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I. Atilla Dicle and Ulku Dicle
Explores the effects of some major changes in the officialgovernment export policies in Turkey. Special emphasis is placed onexport incentives, management strategies and…
Abstract
Explores the effects of some major changes in the official government export policies in Turkey. Special emphasis is placed on export incentives, management strategies and performance of export trading companies.
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With repeal of the extraterritorial income exclusion expected in 2004, many U.S. companies selling abroad must rethink tax strategies related to export profit. Many firms with net…
Abstract
With repeal of the extraterritorial income exclusion expected in 2004, many U.S. companies selling abroad must rethink tax strategies related to export profit. Many firms with net operating loss (NOL) carryforwards, foreign tax credit (FTC) carryforwards, and interest-charge domestic international sales corporations (ICDs) can reduce marginal tax rates (MTRs) below rates otherwise applying to domestic sales. This article provides several case examples illustrating how U.S. exporters can minimize the MTR applicable to export profit. MTRs often depend on the period over which the company expects to absorb its NOL or FTC carryforward, the firm’s discount rate, and, in the case of ICDs, the prevailing T-bill rate. Assuming a 34% corporate tax rate, exporters with NOL (FTC) carryforwards can reduce the MTR on export profit to zero (17%) in some cases. Also, over the range of variables this article examines, the ICD reduces the MTR on export profit to between 34 and 21%. The cases illustrate how NOL and FTC carryforwards and ICDs affect exporters’ MTRs and provide educators with useful tools for discussing the tax aspects of exporting.
THE GOVERNMENT does not provide firms with finance for their export trade. However, the credit insurance policies issued by the Export Credits Guarantee Department do make it…
Abstract
THE GOVERNMENT does not provide firms with finance for their export trade. However, the credit insurance policies issued by the Export Credits Guarantee Department do make it easier in many cases for firms to obtain finance from the banks and other institutions.
Alfred C. Holden and Patricia A. Monter
While export‐credit insurance is traditionally utilized by exporters to protect foreign receivables, to facilitate domestic financing, or to match credit terms of competitors…
Abstract
While export‐credit insurance is traditionally utilized by exporters to protect foreign receivables, to facilitate domestic financing, or to match credit terms of competitors, there is an interesting fourth function. The exporter targeting a creditworthy foreign customer within a country undergoing a temporary economic disruption can use export‐credit insurance to provide a key addition to the foreign customer's working capital needs. This paper quantifies the working capital gains for a Mexican importer when a U.S. exporter liberalizes payment terms by using export‐credit insurance and so alleviates the importer otherwise confronting sharply higher short‐term domestic borrowing costs and a depreciating peso.
Alexander Agronovsky and Christoph Trebesch
This paper analyzes the role of trade credit in financial crises. Using newly collected data, we investigate the impact of negotiated agreements between debtor and creditor…
Abstract
This paper analyzes the role of trade credit in financial crises. Using newly collected data, we investigate the impact of negotiated agreements between debtor and creditor countries on bilateral trade. Our results indicate that exports to creditor countries rise considerably after debt restructuring agreements in the period 1980–1997, while we find no effect for imports and for the more recent period. We identify trade credit as one key channel behind this positive effect. Apparently, crisis resolution efforts, in particular agreements to extend and roll over trade credits, play a crucial role for export recoveries. This gives some support to current worldwide efforts to sustain trade financing via coordinated policy interventions.
Britain lives or dies by exporting. Companies which already sell overseas must sell more. Companies which don't must start. This special guide tells you how.
Salih Turan Katircioglu, Neslihan Kahyalar and Hasret Benar
This paper aims to investigate the possible co‐integration and the direction of causality between financial development, international trade and economic growth in India.
Abstract
Purpose
This paper aims to investigate the possible co‐integration and the direction of causality between financial development, international trade and economic growth in India.
Design/methodology/approach
Annual data covering the 1965‐2004 period have been used to investigate co‐integration and Granger causality tests between financial development, international trade, and growth after employing unit root tests to see if the variables under consideration are stationary.
Findings
Results reveal that there is a long‐run equilibrium relationship between financial development, international trade and real income growth in the case of India. Furthermore, unidirectional causality was investigated that runs from real income to exports and imports, from exports to imports, M2 and domestic credits, from M2 to imports, from imports to domestic credits. Bidirectional causality has also been obtained between real income and M2, and between real income and domestic credits. Finally, no direction of causality has been obtained between M2 and domestic credits.
Research limitations/implications
Expanded data can be used for further comparison.
Practical implications
This study has shown that the supply‐leading and the demand‐following hypotheses cannot be inferred for the Indian economy alone themselves. And furthermore, the export‐led and the import‐led hypotheses again cannot be inferred for the Indian economy based on the sample period, 1965‐2004.
Originality/value
This study is the first of its kind which investigates the possible co‐integration and the direction of causality between the financial development, international trade and economic growth triangle not only in the case of India but also in the relevant literature to the best of one's knowledge.
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Factors influential in directing Turkish manufacturers to exporting are discussed. The research shows that the majority of these companies started exports due to unexpected orders…
Abstract
Factors influential in directing Turkish manufacturers to exporting are discussed. The research shows that the majority of these companies started exports due to unexpected orders and entered this field as a result of domestic economic factors. For most of these companies, the domestic market preserves its significance. Therefore, a different marketing strategy is not implemented for exports. However, as size and export volume increase, a change in attitudes is observed, supporting the findings of previous empirical studies that involvement in export marketing is a sequential and gradual process.
Goitom Tesfom and Clemens Lutz
The lack of detailed statistics in many developing countries makes it very difficult to assess the effect of export support services on the firm's export performance. Moreover, a…
Abstract
Purpose
The lack of detailed statistics in many developing countries makes it very difficult to assess the effect of export support services on the firm's export performance. Moreover, a fundamental factor that creates confusion is the lack of a straightforward causal relationship between a specific export support activity and changes in actual trade patterns. Despite these difficulties, the purpose of this paper is to show that an assessment of the effectiveness of export promotion and support services can be made on the basis of the perceptions of the manufacturers involved. The method is simple and informative.
Design/methodology/approach
This research is based on a survey of 88 footwear and textile manufactures from a small new African country, Eritrea. The sample size accounts for 90 percent of the overall population.
Findings
On average, the quality of the export support services is rated as satisfactory. This can be considered as rather low, as the export promotion policy of the government is much more ambitious. The results of the discriminant analysis are in line with the literature and show that small enterprises in Eritrea have less access to export support services than larger firms. This can be considered as a major failure of the policy as in the modern entrepreneurial export economy small firms play a crucial role.
Research limitations/implications
Although the sample size accounts for 90 percent of the population, it is relatively small. To verify the results it would be interesting to conduct a comprehensive survey that includes all export manufacturing industries in Eritrea.
Practical implications
The findings of this study are useful for export policy makers in developing countries. The presented method shows that it is possible to measure the perception of the manufacturers with regard to the effectiveness of export promotion and support services. It also allows to compare the performance of those services and to identify priorities for the policy agenda.
Originality/value
The study develops a simple evaluation tool for the effectiveness of export support services in developing countries.
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