Studies On China's Export Credit Insurance

To promote the development of foreign trade, both developed and developing countries have taken a variety of different measures to help exporters against the risk, reduce costs and access to financing. As a financial instrument of policy, in order to encourage domestic enterprises to expand exports and open up foreign markets, export credit insurance provides financial security for exports and foreign investment of domestic enterprises. After joining into WTO, any form of direct export subsidies in China is prohibited, and export credit insurance, as one of the means of allowed supporting export policy in WTO Agreement on Subsidies and Countervailing, has become the key policy instrument to support export in China in the future. A range of issues are currently important topics placed in layers of decision-making and the theory, such as the development of export credit insurance, the theoretical basis, the stmulating effect of export credit insurance on China's export trade growth, to achieve the strategic goal of national stability external demand and promoting sustained economic growth and better promotion and protection of export, how to make good use of export credit insurance. Compared to developed countries, China's export credit insurance business is still in the initial stage, the problems in which still need government, export credit insurance institution and enterprises themselves together to solve. Researchs on such issues have both theoretical value, but also have practical significance.In this dissertation, the analysis of the background is the production of export credit insurance and the domestic and international development status, and the main basis of theory is state interventionism. This dissertation studies in-depth from export credit insurance market failure, and analyzes the implementation of utility cost of export credit insurance. On the basis of the comprehensive analysis, the dissertation uses econometric models to analyze the promotion effects of the export credit insurance policies on export trade. In econometric models we use the timing and panel data of different indicators of export credit insurance and by region or by industry. Based on the analysis of the main factors which constraint the development of export credit insurance, the corresponding policy recommendations are put forward.The first chapter is an introduction. Firstly, we introduce the research background and significance of the dissertation. Secondly, we review the relevant domestic and international studies to obtain their studying methods and point out the shortcomings and disadvantages. Finally, we point out the contents, innovation and weakness of the dissertation.In the second chapter, starting from the production of export credit insurance and the related institutions, by analyzing and comparing the export credit insurance status and characteristics in the typical country, we obtain experiences and lessons that we can learn from. In this chapter, the dissertation describes the status of China's export credit insurance, and focus on the following aspects:the rapid growth of export credit insurance market still has large gap with the developed countries, and the main analyzed indicators are premiums rates, premium income, claims paid, coverage and penetration, etc; the development of business types is not balanced; and there is a certain gap between insurance market structure and export product structure.The third chapter is one of the main parts in the dissertation. Firstly, about the theoretical basis of the export credit insurance, whether domestic or international there is not yet a complete theoretical system and the authority of the research results. For the purpose of the perfect theory of export credit insurance, based on the combination of domestic and foreign scholars, the dissertation systematically reviews the economic theory of export credit insurance, mainly from market failures, state intervention theory, the export of strategic trade theory and political economics theory, etc. Secondly, through economic analysis, information asymmetry and the double positive externalities of supply and demand are important reasons for China's lower export credit insurance market penetration rate, higher premiums and loss ratio and other issues, and are general causes of market failure, which easily lead to export credit insurance market into a "lack of demand and supply shortages". If there is no institutional supply of state intervention, the export credit insurance will face greater crisis. Finally, the export credit insurance in fact as a sort of invisible export subsidies, direct export subsidies utility is analyzed; utility cost analysis of implementation of export credit insurance is elaborated, with the conclution that the export insurance has a lower cost with higher benefit.Chapterâ…£is the empirical analysis about export credit insurance on export trade, which is another main part of this dissertation. This chapter studies gradually in three levels. First is the effect of the development of China's export credit insurance on the overall situation of the export based on the analysis of national data. Followed by the analysis of inter-provincial panel data, which is the study of the differences in regional development about export credit insurance in China and the effect of export promotion in different regions; the third is based on the analysis of industry data, for mechanical and electrical products and high-tech products that China's export credit insurance focus on supporting, we test the relationship between the export and the competitiveness status of the two products and the support of China's export credit insurance. In the analysis based on national data, two key indicators of export credit insurance are analyzed, one is correlation of the the export credit insurance amount and export value; the other is that the effectiveness of penetration on export trade promotion is studied through building econometric model. On the analysis method, taking into account the limitations of previous studies, this chapter will use panel data and time series data and multi-use rigorous measurement methods for analysis. Empirical result shows that:the growth of export credit insurance amount and penetration has obvious positive effects on China's export trade, while the promotion effect of the penetration is more obvious; the region's export credit insurance premium income has a positive promotion to the corresponding region's export, from the view of the interaction coefficients, the promotion of eastern region's export credit insurance on exports is significantly stronger than the central and western regions', while the central region slightly higher than the western region; For electromechanical products and high-tech technology products, there is a long-term equilibrium relationship between export credit insurance amount and export trade and competitiveness of their products, and the elasticity of the coverage amount to exports is higher than that of based on national data, reflecting the support of China's credit insurance companies.Chapter V is analysis of main factors that constraint the development of export credit insurance and the policy suggestions. Through the previous theoretical and empirical analysis we know that, as an international financial prevailing policy instruments, export credit insurance has been universally used in international trade, while export credit insurance in China has made considerable progress and played an active role in promoting the cause of China's foreign trade. However, the current system of export credit insurance in China still has some problems, which seriously restrict the healthy development of export credit insurance in China. The chapter will draw on the successful experience of the international export credit insurance, and from the view of the government, export credit insurance company and export companies we analyze the main factors that restrict the development of China's export credit insurance. Combined with the previous theoretical and empirical analysis, the policy suggestions are proposed.