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Export Insurance Policy When Exporting to Lesser-Known Markets

Author

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  • Türkmen GÖKSEL

Abstract

There are crucial differences between exporting to a lesser-known market and exporting to a well-known market. I define a well-known (lesser-known) market if exporters have complete (incomplete) information about importers' characteristics such as contract viability. This risk premium between a well-known market and a lesser-known market causes lower export volume to lesser-known markets. I find that governmentsupported export insurance policies can increase the total volume of exports to lesserknown markets. Moreover, this paper argues that mostly medium-sized firms are getting benefits from this policy.

Suggested Citation

  • Türkmen GÖKSEL, 2010. "Export Insurance Policy When Exporting to Lesser-Known Markets," Sosyoekonomi Journal, Sosyoekonomi Society, issue 2010-2.
    • Handle: RePEc:sos:sosjrn:100205
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    References listed on IDEAS

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    1. Marc J. Melitz & Giancarlo I. P. Ottaviano, 2021. "Market Size, Trade, and Productivity," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 4, pages 87-108, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    Exports; Insurance; Lesser-Known Markets; Incomplete Information.;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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