Export Insurance Policy When Exporting to Lesser-Known Markets

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Sosyoekonomi
Volume:13 Issue:13
Export Insurance Policy When Exporting to Lesser-Known Markets

Export Insurance Policy When Exporting to Lesser-Known Markets

Pages : 0-0

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Publication Date : 2010-12-01

Article Type : Research Paper

Abstract :There are crucial differences between exporting to a lesser-known market and exporting to a well-known market. I define a well-known insert ignore into journalissuearticles values(lesser-known); market if exporters have complete insert ignore into journalissuearticles values(incomplete); information about importers` characteristics such as contract viability. This risk premium between a well-known market and a lesser-known market causes lower export volume to lesser-known markets. I find that government-supported export insurance policies can increase the total volume of exports to lesser-known markets. Moreover, this paper argues that mostly medium-sized firms are getting benefits from this policy.
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