IDEAS home Printed from https://ideas.repec.org/a/kap/openec/v11y2000i1p5-26.html
   My bibliography  Save this article

Export Promotion Via Official Export Insurance

Author

Listed:
  • Filip Abraham
  • Gerda Dewit

Abstract

Proponents of free trade argue that export promotion distorts competition and undermines the multilateral trade system. In most countries export insurance is provided by the government and, consequently, is driven more by a broad range of policy objectives than purely insurance principles. This paper, however, shows that export promotion does not necessarily imply trade distortions and that most export destinations do not benefit from insurance premium subsidies. A significant policy implication of these findings is that the WTO and the EU are correct not to banish completely official export insurance. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Filip Abraham & Gerda Dewit, 2000. "Export Promotion Via Official Export Insurance," Open Economies Review, Springer, vol. 11(1), pages 5-26, January.
    • Handle: RePEc:kap:openec:v:11:y:2000:i:1:p:5-26
    DOI: 10.1023/A:1008388511974
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1008388511974
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1008388511974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Helpman, E., 1995. "Politics and Trade Policy," Papers 30-95, Tel Aviv - the Sackler Institute of Economic Studies.
    2. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    3. Frankel, Jeffrey A. & Rose, Andrew K., 1996. "Currency crashes in emerging markets: An empirical treatment," Journal of International Economics, Elsevier, vol. 41(3-4), pages 351-366, November.
    4. Dixit, Avinash, 1984. "International Trade Policy for Oligopolistic Industries," Economic Journal, Royal Economic Society, vol. 94(376a), pages 1-16, Supplemen.
    5. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    6. Jacques Mélitz & Patrick Messerlin, 1987. "Export Credit Subsidies," Post-Print hal-03393236, HAL.
    7. Jonathan Eaton & Gene M. Grossman, 1986. "Optimal Trade and Industrial Policy Under Oligopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 383-406.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 653-702.
    2. Zheng, J., 2012. "Essays on pensions, health expectancy and credit insurance," Other publications TiSEM 922b794a-7d11-4463-9843-8, Tilburg University, School of Economics and Management.
    3. Christoph Moser & Thorsten Nestmann & Michael Wedow, 2008. "Political Risk and Export Promotion: Evidence from Germany," The World Economy, Wiley Blackwell, vol. 31(6), pages 781-803, June.
    4. Mathias Bärtl & Simone Krummaker, 2020. "Prediction of Claims in Export Credit Finance: A Comparison of Four Machine Learning Techniques," Risks, MDPI, vol. 8(1), pages 1-27, March.
    5. Harald Badinger & Thomas Url, 2014. "Users and Effects of Austrian Export Credit Guarantees," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(03), pages 39-44, August.
    6. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
    7. Yongjian Li & Xueping Zhen & Xiaoqiang Cai, 2016. "Trade credit insurance, capital constraint, and the behavior of manufacturers and banks," Annals of Operations Research, Springer, vol. 240(2), pages 395-414, May.
    8. Hyelin Choi & Kyunghun Kim, 2021. "Effect of Export Credit Insurance on Export Performance: An Empirical Analysis of Korea," Asian Economic Journal, East Asian Economic Association, vol. 35(4), pages 413-433, December.
    9. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano & Francisco Requena-Silvente, 2015. "Regional export promotion offices and trade margins," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 145-167, February.
    10. Dewit, Gerda, 2001. "Intervention in risky export markets: insurance, strategic action or aid?," European Journal of Political Economy, Elsevier, vol. 17(3), pages 575-592, September.
    11. Ernst Baltensperger & Nils Herger, 2009. "Exporting against Risk? Theory and Evidence from Public Export Insurance Schemes in OECD Countries," Open Economies Review, Springer, vol. 20(4), pages 545-563, September.
    12. Mulik, Kranti & Rienstra-Munnicha, Paul & Koo, Won W., 2006. "Empirically Analyzing the Impacts of U.S. Export Credit Programs on U.S. Agricultural Export Competitiveness," 2006 Annual meeting, July 23-26, Long Beach, CA 21224, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Agarwal, Natasha & Chan, Jackie M.L. & Lodefalk, Magnus & Tang, Aili & Tano, Sofia & Wang, Zheng, 2023. "Mitigating information frictions in trade: Evidence from export credit guarantees," Journal of International Economics, Elsevier, vol. 145(C).
    14. Paul Rienstra-Munnicha & Calum G. Turvey, 2002. "The Relationship between Exports, Credit Risk and Credit Guarantees," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(3), pages 281-296, November.
    15. Harald Badinger & Thomas Url, 2013. "Export Credit Guarantees and Export Performance: Evidence from Austrian Firm-level Data," The World Economy, Wiley Blackwell, vol. 36(9), pages 1115-1130, September.
    16. Ali Polat & Mehmet Yesilyaprak, 2017. "Export Credit Insurance and Export Performance: An Empirical Gravity Analysis for Turkey," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 12-24, August.
    17. Thomas Url, 2016. "Gesamtwirtschaftliche Auswirkungen der Exportgarantien in Österreich," WIFO Studies, WIFO, number 58839, January.
    18. Andreas Klasen, 2014. "Export Credit Guarantees and the Demand for Insurance," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(03), pages 26-33, August.
    19. Vazgen Abgaryan & Shane Rosenthal, 2017. "Supporting Exports: Challenges and Opportunities for Credit Insurance in Armenia," Global Policy, London School of Economics and Political Science, vol. 8(3), pages 408-412, September.
    20. Gabriel Felbermayr & Inga Heiland & Erdal Yalcin & Gabriel J. Felbermayr, 2012. "Mitigating Liquidity Constraints: Public Export Credit Guarantees in Germany," CESifo Working Paper Series 3908, CESifo.
    21. Rienstra-Munnicha, Paul & Turvey, Calum G. & Koo, Won W., 2006. "A Theoretical Analysis of Economic Impacts of Export Credit Insurance and Guarantees," 2006 Annual meeting, July 23-26, Long Beach, CA 21391, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Karel Janda, 2008. "Government Support of the Czech Export Credit [Státní podpora českých vývozních úvěrů]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2008(1), pages 62-75.
    23. Alexander Braun & Marius Fischer & Csilla Schreiber-Orosz, 2024. "Why banks insure structured commodity trade finance risk: evidence from a worldwide survey," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(3), pages 537-570, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colacicco, Rudy, 2012. "Strategic Trade Policy in General Oligopolistic Equilibrium," MPRA Paper 38118, University Library of Munich, Germany.
    2. Carolyn Fischer, 2016. "Strategic Subsidies for Green Goods," Working Papers 2016.30, Fondazione Eni Enrico Mattei.
    3. Bastos, Paulo & Straume, Odd Rune & Urrego, Jaime A., 2013. "Rain, agriculture, and tariffs," Journal of International Economics, Elsevier, vol. 90(2), pages 364-377.
    4. Kyle Bagwell & Robert W. Staiger, 2001. "Strategic Trade, Competitive Industries and Agricultural Trade Disputes," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 113-128, July.
    5. Koichi Kagitani, 2008. "The Number Of Firms And The Politics Of Strategic Trade Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(1), pages 107-122, February.
    6. Kyle Bagwell & Robert W. Staiger, 1996. "Reciprocal Trade Liberalization," Discussion Papers 1150, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    7. repec:wsr:wpaper:y:2013:i:126 is not listed on IDEAS
    8. Federico Etro, 2014. "Optimal Trade Policy under Endogenous Foreign Entry," The Economic Record, The Economic Society of Australia, vol. 90(290), pages 282-300, September.
    9. Fletcher, Stanley M. & Nadolnyak, Denis A., 2005. "Accommodating Imperfect Competition in A Model of World Peanut Trade," 2005 Annual meeting, July 24-27, Providence, RI 19460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Bernard, Jean-Thomas & Dupéré, Marc & Roland, Michel, 2003. "International Competition between Public or Mixed Enterprises," Cahiers de recherche 0301, Université Laval - Département d'économique.
    11. Tsung-Chen Lee & Hsiao-Chi Chen & Shi-Miin Liu, 2013. "Optimal strategic regulations in international emissions trading under imperfect competition," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(1), pages 39-57, January.
    12. Anis, Aslam H. & Benarroch, Michael & Wen, Quan, 2002. "Persistent protection in an international exit game," Journal of International Economics, Elsevier, vol. 56(2), pages 465-487, March.
    13. Qianqian Shao & Thorsten Janus & Maarten J. Punt & Justus Wesseler, 2018. "The Conservation Effects of Trade with Imperfect Competition and Biased Policymakers," Agriculture, MDPI, vol. 8(7), pages 1-22, July.
    14. H. Molana & T. Moutos, 1992. "Returns to scale, imperfect competition and aggregate demand and trade policy effects in a two-country model," Open Economies Review, Springer, vol. 3(3), pages 271-295, October.
    15. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Paper Series 498, University of Wisconsin, Agricultural and Applied Economics.
    16. James A. Brander & Barbara J. Spencer, 1986. "International Oligopoly and Asymmetric Labour Market Institutions," NBER Working Papers 2038, National Bureau of Economic Research, Inc.
    17. Spencer, Barbara J., 1988. "Capital subsidies and countervailing duties in oligopolistic industries," Journal of International Economics, Elsevier, vol. 25(1-2), pages 45-69, August.
    18. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
    19. Bagwell, Kyle & Staiger, Robert W., 1994. "The sensitivity of strategic and corrective R&D policy in oligopolistic industries," Journal of International Economics, Elsevier, vol. 36(1-2), pages 133-150, February.
    20. Kyle Bagwell & Robert W. Staiger, 2012. "Profit Shifting And Trade Agreements In Imperfectly Competitive Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1067-1104, November.
    21. Hassan Benchekroun & Ngo Long, 2018. "Nurturing an Infant Industry by Markovian Subsidy Schemes," Dynamic Games and Applications, Springer, vol. 8(3), pages 519-541, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:11:y:2000:i:1:p:5-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.