IDEAS home Printed from https://ideas.repec.org/p/ags/aaea02/19583.html
   My bibliography  Save this paper

The Relationship Between Exports, Credit Risk And Credit Guarantees

Author

Listed:
  • Rienstra-Munnicha, Paul
  • Turvey, Calum G.

Abstract

This paper shows how risk mitigation through export credit insurance could increase exports to high risk importing countries. The key result is that the export response curve is more inelastic in the presence of payment risk, and the effect of insurance is to make the export curve more elastic. Statistical evidence supports this fundamental premise.

Suggested Citation

  • Rienstra-Munnicha, Paul & Turvey, Calum G., 2002. "The Relationship Between Exports, Credit Risk And Credit Guarantees," 2002 Annual meeting, July 28-31, Long Beach, CA 19583, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19583
    DOI: 10.22004/ag.econ.19583
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/19583/files/sp02tu02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.19583?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Filip Abraham & Gerda Dewit, 2000. "Export Promotion Via Official Export Insurance," Open Economies Review, Springer, vol. 11(1), pages 5-26, January.
    2. Ruffin, Roy J., 1974. "International trade under uncertainty," Journal of International Economics, Elsevier, vol. 4(3), pages 243-259, August.
    3. Howard D. Leathers, 2001. "Agricultural Export Subsidies as a Tool of Trade Strategy: Before and after the Federal Agricultural Improvement and Reform Act of 1996," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 209-221.
    4. Anderson, James E & Riley, John G, 1976. "International Trade with Fluctuating Prices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(1), pages 76-97, February.
    5. Brainard, William C. & Cooper, Richard N., 1968. "Uncertainty and Diversification in International Trade," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 8(3), pages 1-29.
    6. Grinols, Earl L, 1985. "Trade, Distortions, and Welfare under Uncertainty," Oxford Economic Papers, Oxford University Press, vol. 37(3), pages 362-374, September.
    7. Eaton, Jonathan, 1979. "The Allocation of Resources in an Open Economy with Uncertain Terms of Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(2), pages 391-403, June.
    8. Gerda Dewit, 1996. "Export Insurance Subsidisation: Risk Coverage, Strategic Export Promotion or Aid?," Working Papers 9614, Business School - Economics, University of Glasgow.
    9. Rude, James, 2000. "Reform of Agricultural Export Credit Programs," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 1(2), pages 1-13.
    10. World Bank, 2000. "World Development Indicators 2000," World Bank Publications - Books, The World Bank Group, number 13828.
    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. 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.
    2. 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.
    3. Ben Jelili Riadh, 2020. "Do Default Loss Risks Matter for Arab Exports? Evidence from a Gravity Modelling Approach," Review of Middle East Economics and Finance, De Gruyter, vol. 16(3), pages 1-22, December.
    4. 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.
    5. Sriyanto Sriyanto & Muhammad Imran & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & ?Dadang Yunus Lutfiansyach? & Parmono Parmono & Abdul Wahab Pathath & Mohd Khata Jabor, 2023. "Harnessing the Power of Globalization: A Study of the Association between Globalization, Transportation Energy, and Insurance and Financial Services in Europe and Central Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 453-461, March.
    6. 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.
    7. Jing Qin & Kun Qin & Yuxiang Cheng & Desheng Wu, 2022. "Trade Credit Insurance for the Capital-Constrained Supplier," Sustainability, MDPI, vol. 14(21), pages 1-19, October.

    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. Michele Di Maio & Marco Valente, 2013. "Uncertainty, Specialization and Government Intervention," Metroeconomica, Wiley Blackwell, vol. 64(2), pages 215-243, May.
    2. 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).
    3. 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).
    4. Helpman, Elhanan & Razin, Assaf, 1979. "A Theory of International Trade Under Uncertainty," Elsevier Monographs, Elsevier, edition 1, number 9780123396501 edited by Shell, Karl.
    5. Nuno Limão & Giovanni Maggi, 2018. "Uncertainty and Trade Agreements," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 3, pages 47-88, World Scientific Publishing Co. Pte. Ltd..
    6. Cuddington, John T & Liang, Hong & Lu, Shihua, 1996. "Uncertainty, Trade, and Capital Flows in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 5(3), pages 192-224, October.
    7. Michele Di Maio & Marco Valente, 2006. "Uncertainty, Optimal Specialization and Growth," LEM Papers Series 2006/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    8. Coyle, Barry & Chambers, Robert G. & Schmitz, Andrew, 1986. "Economic Gains from Agricultural Trade: A Review and Bibliography," Miscellaneous Publications 319990, United States Department of Agriculture, Economic Research Service.
    9. Barari, Mahua, 1992. "Asset markets, stochastic policy and international trade," ISU General Staff Papers 1992010108000010972, Iowa State University, Department of Economics.
    10. Sgro, Pasquale M., 1983. "A Selective Review of Developments in International Trade Theory: Commercial Policy and Free Trade," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 51(01), pages 1-20, April.
    11. Sacchidananda Mukherjee & Debashis Chakraborty & Julien Chaisse, 2014. "Influence of Subsidies on Exports empirical estimates,policy evidences and regulatory prospects," Working Papers 1422, Indian Institute of Foreign Trade.
    12. Richard Mash, 1996. "Supply flexibility and insurance under commodity market instability," Economics Series Working Papers WPS/1996-10, University of Oxford, Department of Economics.
    13. repec:ilo:ilowps:366690 is not listed on IDEAS
    14. Wo[ss]mann, Ludger & West, Martin, 2006. "Class-size effects in school systems around the world: Evidence from between-grade variation in TIMSS," European Economic Review, Elsevier, vol. 50(3), pages 695-736, April.
    15. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    16. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(3), pages 237-270, September.
    17. Corneo, Giacomo & Fong, Christina M., 2008. "What's the monetary value of distributive justice," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 289-308, February.
    18. Mookerjee, Rajen & Beron, Krista, 2005. "Gender, religion and happiness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(5), pages 674-685, October.
    19. Cei, Leonardo & Stefani, Gianluca & Defrancesco, Edi & Lombardi, Ginevra Virginia, 2018. "Geographical indications: A first assessment of the impact on rural development in Italian NUTS3 regions," Land Use Policy, Elsevier, vol. 75(C), pages 620-630.
    20. Elif Bascavusoglu & Maria Pluvia Zuniga, 2005. "The effects of intellectual property protection on international knowledge contracting," Cahiers de la Maison des Sciences Economiques bla05009, Université Panthéon-Sorbonne (Paris 1).
    21. Jianchun Fang & Giray Gozgor & Sercan Pekel, 2020. "Where You Export Matters: Measuring Uncertainty in Turkey's Export Markets," CESifo Working Paper Series 8404, CESifo.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    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:ags:aaea02:19583. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.