Public Export Credit Guarantees and Foreign Trade Structure: Evidence from Austria
Abstract
Foreign trade is usually not based on cash transactions, but rather sales on credit are the rule. The resulting monitoring costs for lenders and the risk of default on accounts receivable are part of the costs associated with cross-border goods transactions. Relative to domestic trade credit, cross-border credit creates trade barriers due to differences in language, business practice, jurisdiction and payment enforceability between trading partners. Export credit insurance has long been a domain of public export credit agencies. Only since the early 1980s private insurance is gaining ground. Using disaggregated panel data for goods exports from Austria over the period 1996 to 2002, we show that public export credit guarantees have a less than proportional positive effect on international trade volume. They predominantly affect the country structure of foreign trade but leave the industry specialisation almost unchanged. Copyright 2006 The Authors Journal compilation 2006 Blackwell Publishing Ltd .Download Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal World Economy.
Volume (Year): 29 (2006)
Issue (Month): 4 (04)
Pages: 399-418
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Zheng, J., 2012. "Essays on pensions, health expectancy and credit insurance," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5661243, Tilburg University.
- Nestmann, Thorsten & Moser, Christoph & Wedow, Michael, 2006.
"Political risk and export promotion: Evidence from Germany,"
Research Notes
23, Deutsche Bank Research.
- 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, 06.
- Moser, Christoph & Nestmann, Thorsten & Wedow, Michael, 2006. "Political risk and export promotion: evidence from Germany," Discussion Paper Series 1: Economic Studies 2006,36, Deutsche Bundesbank, Research Centre.
- Völz, Manja & Wedow, Michael, 2009. "Does banks size distort market prices? Evidence for too-big-to-fail in the CDS market," Discussion Paper Series 2: Banking and Financial Studies 2009,06, Deutsche Bundesbank, Research Centre.
- Gabriel J. Felbermayr & Erdal Yalcin, 2011. "Export Credit Guarantees and Export Performance:An Empirical Analysis for Germany," Ifo Working Paper Series Ifo Working Paper No. 116, Ifo Institute for Economic Research at the University of Munich.
- Harald Badinger & Thomas Url, 2012. "Export Credit Guarantees and Export Performance. Evidence from Austrian Firm-Level Data," WIFO Working Papers 423, WIFO.
- Karel Janda & Eva Michalíková & Věra Potácelová, 2010. "Gravity and Fiscal Models of Government Support of Export Credit in the Czech Republic," Politická ekonomie, University of Economics, Prague, vol. 2010(3), pages 305-325.
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