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http://hdl.handle.net/10419/19665
  

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dc.contributor.authorMoser, Christophen_US
dc.contributor.authorNestmann, Thorstenen_US
dc.contributor.authorWedow, Michaelen_US
dc.date.accessioned2009-01-28T16:01:50Z-
dc.date.available2009-01-28T16:01:50Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/19665-
dc.description.abstractPolitical risk represents an important hidden transaction cost that reduces international trade. This paper investigates the claim that German public export credit guarantees (Hermes guarantees) mitigate this friction to trade flows and hence promote exports. We employ an empirical trade gravity model, where we explicitly control for political risk in the importing country in order to evaluate the effect of export guarantees. The idea behind export promotion through public export credit agencies (ECAs) is that the private market is unable to provide adequate insurance for all risks associated with exports. As a consequence, firms' export activities are limited in the absence of insurance provision. Using a novel data set on guarantees we estimate the effect of guarantees in a static and dynamic panel model. We find a statistically and economically significant positive effect of public export guarantees on exports which indicates that export promotion is indeed effective. Furthermore, political risk turns out to be a robust determinant of exports and hence should be taken into account in any empirical model of trade.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2006,36en_US
dc.subject.jelC23en_US
dc.subject.jelH81en_US
dc.subject.jelF13en_US
dc.subject.ddc330en_US
dc.subject.keywordpublic export credit guaranteesen_US
dc.subject.keywordpolitical risken_US
dc.subject.keywordpanel regressionen_US
dc.subject.stwExportgarantieen_US
dc.subject.stwWirtschaftspolitische Wirkungsanalyseen_US
dc.subject.stwExporten_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.subject.stwLänderrisikoen_US
dc.subject.stwWelten_US
dc.titlePolitical risk and export promotion: evidence from Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn520241355en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:5110-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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