Testing the trade credit and trade link: Evidence from data on export credit insurance

Arbeitspapier

Trade finance has received special attention during the financial crisis as one of the potential culprits for the great trade collapse. Several researchers have used micro level data to establish the link between trade finance and trade, especially so during the financial crisis, and have found diverting results. This paper analyses the effect of trade credit on trade on a macro level through a whole cycle. We employ Berne Union data on export credit insurance, the most extensive dataset on trade credits available at the moment, for the period of 2005-2011. Using an instrumentation strategy we can identify a significantly positive effect of insured trade credit, as a proxy for trade credits, on trade. The effect of insured trade credit on trade is very strong and remains stable over the cycle, not varying between crisis and non-crisis periods.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WTO Staff Working Paper ; No. ERSD-2012-18

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; International Lending and Debt Problems ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Subject: trade credit ; financial crisis ; import estimation ; Außenhandelsfinanzierung ; Finanzkrise ; Exportkredit ; Exportkreditversicherung

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Auboin, Marc ; Engemann, Martina
• Event: Veröffentlichung
• (who): World Trade Organization (WTO)
• (where): Geneva
• (when): 2012

Further information

• DOI: doi:10.30875/bd4017e8-en
• Handle: http://hdl.handle.net/10419/80063
• Last update: 10.03.2025, 11:43 AM CET