The Effect of Export Insurance on Export of Selected Countries

Export insurance facilitates export and global economic growth by decreasing and compensating commercial, political and economic risks. There are different opinions about the effect of export insurance on export. Despite this and since export insurance increases the cost of exports, a significant effect of export insurance on export deserves further investigation. The present research examines the hypothesis which is export insurance has a significant and positive effect on exports. For this, an econometric panel data of 40 countries (including 20 developed and 20 developing countries) during the period 2005-2013 has been employed. The results from the model confirms a significant and positive relation between export insurance and exports. Therefore, we suggest that policy makers and exporters pay special attention to export insurance.