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Abstract

This paper looked at the on the ongoing debate on the use of public export credit programs and their impact on US exports. Our results indicate that cost saving is significant beneficial to the importing countries as a result of the export credit programs. There is also an increase in US exports as a result of the US export credit programs. However, there is a reduction in cost savings to the importing countries when the length of repayment of export credit is 180 days. Thus, the more restrictive terms and conditions of officially supported export credits which the WTO is trying to discipline based on their implicitly subsidized components will have some adverse impact on the importing countries.

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