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...
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World Bank, Washington, DC
2020
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| 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 |
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okr-10986-343712022-09-20T00:11:41Z Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan Defever, Fabrice Riano, Alejandro Varela, Gonzalo J. TRADE FINANCE EXPORT CREDIT EXPORT SUBSIDY EXPORT MARGIN EXPORT MARGIN 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. 2020-08-20T14:41:42Z 2020-08-20T14:41:42Z 2020-08 Working Paper 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 English Policy Research Working Paper;No. 9362 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Pakistan |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
TRADE FINANCE EXPORT CREDIT EXPORT SUBSIDY EXPORT MARGIN EXPORT MARGIN |
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TRADE FINANCE EXPORT CREDIT EXPORT SUBSIDY EXPORT MARGIN EXPORT MARGIN Defever, Fabrice Riano, Alejandro Varela, Gonzalo J. Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan |
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South Asia Pakistan |
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Policy Research Working Paper;No. 9362 |
| description |
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. |
| format |
Working Paper |
| author |
Defever, Fabrice Riano, Alejandro Varela, Gonzalo J. |
| author_facet |
Defever, Fabrice Riano, Alejandro Varela, Gonzalo J. |
| author_sort |
Defever, Fabrice |
| title |
Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan |
| title_short |
Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan |
| title_full |
Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan |
| title_fullStr |
Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan |
| title_full_unstemmed |
Evaluating the Impact of Export Finance Support on Firm-Level Export Performance : Evidence from Pakistan |
| title_sort |
evaluating the impact of export finance support on firm-level export performance : evidence from pakistan |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
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 |
| _version_ |
1764480759904600064 |