Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan
This paper evaluates the impact of two export finance support schemes, the Export Finance Scheme and the Long-Term Finance Facility for Plant & Machinery on firm-level export performance in Pakistan. These policies offer loans to exporters at c...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/580181597344115826/Evaluating-the-Impact-of-Export-Finance-Support-on-Firm-Level-Export-Performance-Evidence-from-Pakistan http://hdl.handle.net/10986/34371 |
| Summary: | This paper evaluates the impact of two
export finance support schemes, the Export Finance Scheme
and the Long-Term Finance Facility for Plant & Machinery
on firm-level export performance in Pakistan. These policies
offer loans to exporters at concessionary interest rates to
finance short-term working capital and long-term investment
in machinery and equipment, respectively. The paper combines
customs data with information on firms that participated in
each scheme and the value of the loans they obtained between
2015 and 2017. Using matching estimators to control for the
nonrandom selection of firms into the schemes, the analysis
finds that the Export Finance Scheme and Long-Term Finance
Facility for Plant & Machinery increased the growth rate
of export sales by 7 and 8-11 percentage points, but they do
not have a significant impact on the number of products that
a firm exports or the number of foreign countries to which
it sells to. A cost-benefit analysis shows that although
both schemes deliver net benefits, they entail a substantial
financial cost to Pakistan's central bank. |
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