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International Exports Of Industrial Goods And Technology

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Introduction
Today, more than 50 economies operate ECAs to support national exports of industrial goods and technology. A large portion of export credit transactions are related to large scale energy projects such as power plants, hydropower dams and pipeline infrastructures, that may take several years to develop and are often associated with countries with high political risk. ECAs provide financial supports to national exporters in forms of export insurance, risk guarantees and direct loans so exporters can accept deferred payments from buyers under condition of high uncertainty.
Such financing instrument has gained its strategic importance as more economies view exports as a vital national objective and lead to increase in number of established ECAs and volumes of export credit transactions. During the 1990s, the annual volume of export credit provided by Organisation for Economic Cooperation and Development (OECD) countries averaged roughly $80-100 billion per annum (Maurer and Nakhood, 2003). Since then, volumes have grown, reaching a record of $514 billion in 2010 (Berne Union 2011). As ECAs gained presence in international financial market, its influence beyond their impact on international trade flows were acknowledged among stakeholders. One of notable concerns was impact on environment. Environmental groups have criticized ECAs for being involved in controversial large scale projects that have negative impacts on environment, such as large dams that submerge
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