Export Credit Guarantees and Export Performance: An Empirical Analysis for Germany
By Gabriel Felbermayr, Erdal Yalcin. 2013
130 citations recorded by the source corpus.
Recent literature finds that exporters are particularly vulnerable to financial market frictions. As a consequence, exports may be lower than their efficient levels. For this reason, many countries support exporters by underwriting export credit guarantees. The empirical evidence on the effects of those policies is, however, very limited. In this paper, we use sectoral data on export credit guarantees issued by the German government. We investigate whether those guarantees indeed do increase exports and whether they remedy the export-restricting effect of credit market imperfections both on the sectoral and on the export-market levels. Exploiting the sectoral structure of a rich three-way panel data set of German exports, we control for unobserved heterogeneity on the country-year, sector-year and country-sector dimensions. We document a robust export-increasing effect of guarantees. There is some evidence that the effect is larger for export markets with poor financial institutions and in sectors that rely more on external finance.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/7b66b196b3f84b795dec13c9d4bf7ebdc76dfdd9
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Citations in the corpus
- Testing the trade credit and trade link: evidence from data on export credit insurance (2014, methodology): “Felbermayr and Yalcin (2013) estimate the effect of export credit insurance on exports using data of the German export credit agency Euler–Hermes applying a fixed effects estimator, not instrumenting the credit insurance variable.”