This report provides estimates of the resource costs of Western export credit policies, particularly the granting of guarantees on Western credits to the Soviet Bloc. Official export credit programs are in place because Western governments believe they increase employment and welfare in the exporting (and subsidizing) country, but the authors conclude that subsidies are more likely to reduce welfare in the exporting country than to increase it. They find that the gains to Western export industries are more than offset by the losses of Western consumers and taxpayers. In short, the only clear-cut winners under the current system are the importing countries.
This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.