Konferenzbeitrag
Export Market Risk and the Role of Public Credit Guarantees
In this paper we analyze the impact of public export credit guarantees on firms' exports. Earlier studies show that export credit guarantees stimulate exports, employment, and value added. Furthermore, there is evidence at the aggregate level that financial market imperfections are key to understanding the beneficial effects of this policy instrument. We use monthly firm-level survey data combined with official transaction-level data on covered exports of German firms to analyze in detail the hypothesis that the positive effects are due to mitigated financial constraints. Considering exporter and importer characteristics, as well as transaction-specific characteristics, we shed light on the particular sources of financing constraints that can be alleviated by the policy instrument. We find that positive effects are stronger at times when refinancing conditions for the private sector are tight. Furthermore, our results indicate that small firms and firms with little liquid means benefit more, and that the public guarantees matter especially for contracts involving large values at risk. Our analysis contributes to a better understanding of the interplay between export credit guarantees and financial market imperfections, which is crucial for an efficient policy design.
- Language
-
Englisch
- Bibliographic citation
-
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Economic Integration and SME Finance ; No. C03-V3
- Classification
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Financial Aspects of Economic Integration
Financial Institutions and Services: Government Policy and Regulation
- Event
-
Geistige Schöpfung
- (who)
-
Yalcin, Erdal
Heiland, Inga
- Event
-
Veröffentlichung
- (who)
-
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
- (where)
-
Kiel und Hamburg
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Yalcin, Erdal
- Heiland, Inga
- ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2014
Other Objects (12)
The ‘Celtic Crisis’: Guarantees, transparency, and systemic liquidity risk
The prevalence of credit risk in Greek Banking: Risk management & methodology for evaluating corporate credit risk and Greek Business Environment
Bank Bonuses and Bail-out Guarantees
Bank Risk Taking, Credit Booms and Monetary Policy
A Review of Algorithms for Credit Risk Analysis
Price Guarantees, Consumer Search, and Hassle Costs
The Risk of Hypothecary Credit Indexed to Swiss Franc
Abolishing Public Guarantees in the Absence of Market Discipline
Export market risk and the role of state credit guarantees
Export Market Risk and the Role of State Credit Guarantees
Export market risk and the role of state credit guarantees
Micro-credit, risk coping and the incidence of rural-to-urban migration
The ‘Celtic Crisis’: Guarantees, transparency, and systemic liquidity risk
The prevalence of credit risk in Greek Banking: Risk management & methodology for evaluating corporate credit risk and Greek Business Environment
Bank Bonuses and Bail-out Guarantees
Bank Risk Taking, Credit Booms and Monetary Policy
A Review of Algorithms for Credit Risk Analysis
Price Guarantees, Consumer Search, and Hassle Costs
The Risk of Hypothecary Credit Indexed to Swiss Franc
Abolishing Public Guarantees in the Absence of Market Discipline
Export market risk and the role of state credit guarantees
Export Market Risk and the Role of State Credit Guarantees
Export market risk and the role of state credit guarantees
Micro-credit, risk coping and the incidence of rural-to-urban migration
The ‘Celtic Crisis’: Guarantees, transparency, and systemic liquidity risk
The prevalence of credit risk in Greek Banking: Risk management & methodology for evaluating corporate credit risk and Greek Business Environment
Bank Bonuses and Bail-out Guarantees
Bank Risk Taking, Credit Booms and Monetary Policy
A Review of Algorithms for Credit Risk Analysis
Price Guarantees, Consumer Search, and Hassle Costs
The Risk of Hypothecary Credit Indexed to Swiss Franc
Abolishing Public Guarantees in the Absence of Market Discipline
Export market risk and the role of state credit guarantees
Export Market Risk and the Role of State Credit Guarantees
Export market risk and the role of state credit guarantees