The Impact Of Export Credit Insurance On Export Competitiveness

The WTO Subsidy and Countervailing Measures Agreement affirms the legitimacy of policy-based export credit insurance in supporting governments to develop international trade.On the 20th CPC National Congress also proposed to adhere to the integration of development and security,effective prevention and resolution of financial risks,play a professional advantage in risk management,help the country build overseas interests protection and risk warning and prevention system.At present,although China’s foreign trade has made great achievements,it faces increasing international trade competition,slow global economic growth,rising inflation,and a sharp increase in political and commercial risks faced by exporters,which greatly hinders China’s export trade and also weakens the competitiveness of China’s foreign trade.At the same time,China’s economy is facing the transition from the stage of high-speed growth into the stage of high-quality development,more and more experts and scholars have begun to realize that although the number of Chinese exports is huge,but the importance of the "quality" of products is much higher than the quantity.Therefore,China should base on the high level of opening up to the outside world,give full play to the support role of export credit insurance and other foreign financial support systems for China’s export competitiveness and play its counter-cyclical adjustment role.In order to verify the positive role of export credit insurance in enhancing export competitiveness and promoting economic growth,as well as to verify the mediating effect played by the technical complexity of exports,this paper firstly elaborates on the development history of export credit insurance in China,the characteristics of export credit insurance,etc.Secondly,the relevant theories are organized to sort out the mechanisms by which export credit insurance affects export competitiveness;they include market failure view,public goods theory,policy instrument theory,export subsidy legitimization theory and new factor endowment theory related to export credit insurance,and global value chain theory and competitive advantage theory related to export competitiveness.The aggregate effect of export credit insurance on export competitiveness and the transmission effect with export technical complexity as the mediating variable are derived,and the three hypotheses of this paper are proposed based on the underlying theory and mechanism analysis.Combining theoretical research,mechanism analysis and relevant hypotheses,this paper tests the hypotheses through empirical analysis.The data of 24 provinces,cities and autonomous regions operating export credit insurance business from 2009 to 2021 are selected as the research samples,and the relevant empirical analysis is conducted based on the panel regression model and the mediating effect model.The findings of the study are as follows.(1)Export credit insurance has a significant role in promoting the competitiveness of China’s exports.Export enterprises create a safe and stable international trade environment for themselves by taking out export credit insurance.(2)Export credit insurance not only directly influences export competitiveness,but also indirectly influences export competitiveness through the intermediary variable of export technical complexity.(3)Due to the unbalanced development of export credit insurance in different regions,the impact on export competitiveness also varies to some extent.Among them,the promotion effect of export credit insurance on export competitiveness in the central and western region is better than that in the eastern regions.(4)Exchange rate reform and economic events such as the new crown pneumonia epidemic will also have an impact on the competitiveness of China’s foreign trade.Exchange rate reform makes China’s foreign trade affected by global economic and political aspects,increasing the risk faced by exports,which is not conducive to the improvement of export competitiveness;export credit insurance in response to the new crown pneumonia epidemic effectively played the function of risk sharing and loss compensation,showing counter-cyclical regulation.Finally,based on the research findings,this paper puts forward corresponding suggestions and countermeasures for financial institutions operating export credit insurance and relevant regulatory authorities.