Export Credit Guarantees and Export Performance:An Empirical Analysis for Germany
AbstractRecent 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 empiricalevidence on the effects of those policies is, however, very limited. In this paper, we usesectoral data on export credit guarantees issued by the German government. We investigatewhether those guarantees indeed do increase exports, and whether they remedy the exportrestrictingeffect of credit market imperfections both on the sectoral and on the exportmarket levels. Exploiting the sectoral structure of a rich three-ways panel data set ofGerman exports, we control for unobserved heterogeneity on the country-year, sectoryear,and country-sector dimensions. We document a robust export-increasing effect ofguarantees. There is some evidence that the effect is larger for export markets with poorfinancial institutions and in sectors that rely more on external finance.
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Bibliographic InfoPaper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 116.
Date of creation: 2011
Date of revision:
Financial development; credit constraints; gravity equation; financial crisis.;
Other versions of this item:
- Gabriel J. Felbermayr & Erdal Yalcin, 2013. "Export Credit Guarantees and Export Performance: An Empirical Analysis for Germany," The World Economy, Wiley Blackwell, vol. 36(8), pages 967-999, 08.
- Felbermayr, Gabriel & Yalcin, Erdal, 2013. "Export credit guarantees and export performance: An empirical analysis for Germany," Munich Reprints in Economics 20348, University of Munich, Department of Economics.
- F10 - International Economics - - Trade - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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