USING EXPORT‐CREDIT INSURANCE TO ENHANCE THE WORKING CAPITAL REQUIREMENTS OF THE OVERSEAS CUSTOMER: ACCOMMODATING MEXICAN IMPORTERS AMIDST THE 1994–95 PESO CRISIS

1997 ◽  
Vol 23 (4) ◽  
pp. 47-62 ◽  
Author(s):  
Alfred C. Holden ◽  
Patricia A. Monter
Keyword(s):  
Capital Requirements ◽  
Export Credit ◽  
Working Capital ◽  
Credit Insurance ◽  
Export Credit Insurance

Export Credit Insurance

1986 ◽  
Vol 53 (4) ◽  
pp. 679 ◽  
Author(s):  
Hideki Funatsu
Keyword(s):  
Export Credit ◽  
Credit Insurance ◽  
Export Credit Insurance

scholarly journals Export credit insurance-a comparison

1972 ◽  
Vol 7 (1) ◽  
pp. 18-21
Author(s):  
Dieter Stentzel
Keyword(s):  
Export Credit ◽  
Credit Insurance ◽  
Export Credit Insurance

Game Analysis of Risk Factors under Export Credit Insurance Finance

2018 ◽  
Vol 12 (2) ◽  
Author(s):  
Yanjing Shi ◽  
Haiyan Wang
Keyword(s):  
Game Theory ◽  
Risk Analysis ◽  
Early Stage ◽  
Insurance Industry ◽  
Export Credit ◽  
Tree Model ◽  
Credit Insurance ◽  
Export Credit Insurance ◽  
Related Risk ◽  
Credit Agency

Abstract Export credit insurance plays an important role in promoting exportation, and thus it represents a guarantee of payment receivable for exporter. It not only offers a good way to disperse and release risk caused by uncertainty of foreign countries and importers’ credit, but also inspires a good finance support for exporter. Export corporations can apply loan from banks easily with the guarantee of export credit insurance. Characterized with lower threshold, export credit insurance finance(ECIF) becomes a good funding choice especially for small and medium companies and brings considerable intermediate businesses to commercial banks. Despite the benefits of ECIF, false trades appear frequently due to the intricate risks that are hard to be measured by quantitative method. The risks covered by export credit insurance include commercial risk and political risk. Commercial risks can be classified by two reasons: importer bankruptcy and importer collusion with exporter. The risk of insolvency can be measured by modern credit risk models, however, the probability that importer breaches a contract due to dishonesty is hard to be discerned because of information asymmetry and high cost of investigation. In ECIF, the risk is even harder to be measured as risks form both importer and exporter are involved. Game theory is widely used in adverse selection and moral hazard. The application of game theory inspired a microeconomic way of risk analysis in ECIF. The case of ECIF can be a seen as a game among the export enterprise, importer, insurer and bank. This paper will figure out the utility of each party under certain default situation and analyze each risk factor. We adopt joint game approach and tree model to obtain the equilibrium result. The purpose is to maximize the expected utility of each party and minimize the probability of exporter and importer’s collusion as they are the core reasons for the loss of commercial bank and export credit agency (ECA). Since the export credit insurance industry and related risk research are still in the early stage in China, we hope this study can enlighten a new way of risk analysis on ECIF.

scholarly journals Export Credit Insurance and Export Performance: An Empirical Gravity Analysis for Turkey

2017 ◽  
Vol 9 (8) ◽  
pp. 12
Author(s):  
Ali Polat ◽  
Mehmet Yesilyaprak
Keyword(s):  
Export Performance ◽  
Fixed Effect ◽  
Export Credit ◽  
Independent Variables ◽  
Credit Insurance ◽  
Export Credit Insurance ◽  
Empirical Trade ◽  
Credit Agency ◽  
Maximum Likelihood Estimations ◽  
Pseudo Maximum Likelihood

The paper attempts to find out how far Turkey’s official export credit agency, Turk Eximbank, foster export of Turkey during the years of 2000-2015 by employing an empirical trade gravity equation. We estimate different panel gravity regressions for 212 countries for the period of 16 years and the results reveal that a change in export credit insurance positively affect Turkish export, assuming other independent variables are held constant. After applying several post estimation tests we used fixed effect panel specification as the main estimation. In order to allow comparison we also run clustered, robust OLS. Poisson fixed effect (Poisson) and Poisson Pseudo maximum likelihood estimations (PPML) are also estimated to allow for zero trade values in dependent variable in its level. Our analysis also shows that there are significant individual and time effects in panel data structure. Our estimate of different panel gravity regressions for 212 countries and 16 years revealed that increasing export insurance will positively affect Turkish export.

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