Economic Cost and Benefits of Subsidizing Western Credits to the East: Executive Briefing.

Abstract

In the hope of increasing sales for their export industries, Western governments subsidize credits extended to foreign purchasers of their export products in two ways: directly, by offering loans at rates below their own cost of funds, and indirectly, by guaranteeing repayment of loans, thus absolving the borrower of the need to pay a risk surcharge. This report summarizes research that estimates the value of these subsidies to the Soviet bloc and analyzes the effects that they have on economic welfare in the exporting and importing countries. The analysis suggests that the costs to Western governments of subsidizing trade to the Soviet bloc are substantial and probably exceed the benefits. Additional keywords: economic analysis; USSR; Eastern Europe; international trade. (Author)

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1985
Accession Number
ADA154808

Entities

People

  • D. F. Kohler

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Air Platforms

DTIC Thesaurus Topics

  • Commerce
  • Communist Countries
  • Corporations
  • East Germany
  • Eastern Europe
  • Economic Analysis
  • Economic Policy
  • Europe
  • Foreign Aid
  • Germany
  • Government (Foreign)
  • Governments
  • International Relations
  • International Trade
  • United States
  • Ussr
  • Western Europe

Fields of Study

  • Economics

Readers

  • East Asian Political and Security Studies within the Soviet Union
  • Government and Public Administration Law.
  • Life Cycle Cost Analysis