Support for foreign trade financing

For many firms, particularly smaller ones, foreign trade can be risky – the firm does not know if the foreign buyer will pay. To this end, countries often provide support in terms of guarantees and credits. Despite the magnitude of the support, there is only very limited research on the topic, due to lack of data. We analyse the effects of support on Swedish firms’ internationalisation and growth. Knowledge about potential effects is particularly important for the small and open economy of Sweden. We aim to contribute to a deeper understanding of the complex role that the public support has. With this knowledge, we expect policymakers and authorities to have a firmer base for making decisions on the design of support to reach goals in terms of growth and internationalisation. Moreover, firms are expected to find the knowledge useful in their decisions on how to finance their foreign trade.