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The Role of Export Credit Agencies in Trade Around the Global Financial Crisis: Evidence from G20 Countries

Author

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  • Simdi Halil

    (Department of International Trade and Logistics, Business School, Sakarya University, Kemalpaşa, Esentepe Kampüsü, Üniversite Cd., Serdivan/Sakarya, 54050, Turkey)

  • Tunahan Hakan

    (Department of International Trade and Logistics, Business School, Sakarya University, Kemalpaşa, Esentepe Kampüsü, Üniversite Cd., Serdivan/Sakarya, 54050, Turkey)

  • Jahangir Rashed

    (Department of International Trade and Logistics, Business School, Sakarya University, Kemalpaşa, Esentepe Kampüsü, Üniversite Cd., Serdivan/Sakarya, 54050, Turkey)

Abstract

This study investigates the impact of export credit support provided by export credit agencies (ECAs) on exports among G20 countries before, during, and after the 2008 Global Financial Crisis (GFC). Using an augmented gravity model and the autoregressive distributed lag approach, we analyze trade flows across 17 countries over 61 quarters from 2005 to 2020. The findings reveal that export credit support has a significant influence on long-term trade dynamics, with medium-term instruments having a positive impact, while short-term instruments exhibit negative long-term effects. Notably, during the GFC, total insured export credit instruments had a negative long-term impact but a positive short-term effect. These results highlight the critical role of ECAs in managing trade during periods of economic turbulence and stability. Our study contributes to the literature by offering a dynamic understanding of ECA effectiveness under varying economic conditions and provides valuable insights for policymakers in shaping strategies for ECAs.

Suggested Citation

  • Simdi Halil & Tunahan Hakan & Jahangir Rashed, 2025. "The Role of Export Credit Agencies in Trade Around the Global Financial Crisis: Evidence from G20 Countries," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-18.
    • Handle: RePEc:bpj:econoa:v:19:y:2025:i:1:p:18:n:1003
    DOI: 10.1515/econ-2025-0168
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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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