Tying Trade Flows: A Theory of Countertrade

Preprint OPEN
Marin, Dalia; Schnitzer, Monika;
  • Subject: Countertrade; Creditworthiness; Double Moral Hazard Problem; Sovereign Debt; Technology Transfer
    • jel: jel:D23 | jel:F13 | jel:F34 | jel:L14

A countertrade contract ties an export to an import. Usually, countertrade is seen as a form of bilateralism and reciprocity and thus as an inefficient form of international exchange. In this paper we argue that there are circumstances where the tying of two technologic... View more
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