9 - A Test of Additionality

Abstract

This chapter provides an overview of FY1979–1981 aircraft credits and all FY1980–1981 credits to determine if the Bank's export financing decisions show evidence that it responded in an effective manner to its legislative mandate. The focus is on aircraft credits because they represent well over 40% of the Bank's credits authorized during this period. The chapter discusses the Eximbank direct credit policy for aircraft exports and to determine if the Bank provided more generous financing in those cases facing greater product or financing competition and those where a country's access to capital markets was limited. The hypotheses to be tested regarding the Bank's decision making are: 1) the Bank provides more generous financing, the greater is the degree of product or financing competition, as measured by the Bank's competitiveness ranking. 2). The Bank provides more generous financing, the less access the importing country has to capital markets. 3) The Bank provides more generous financing the greater is the potential export value.