A Study On The Agricultural Export Credit Insurance In China

Nowadays, China has become a major agricultural trading nation as its imports ranked fourth in the world and exports ranked fifth in the world. The expansion of agricultural exports is an important way to increase employment opportunities for farmers, to promote new socialist countryside and new agricultural structure adjustment and to improve the competitiveness of agriculture. But in the recent years, especially after the outbreak of the financial crisis, China's agricultural exports turbulent ups and downs and agricultural export enterprises at risk of loss are quite common. In this context, the research on agricultural export credit insurance has important theoretical and practical significance.Based on some important indications of agricultural export credit insurance and the agricultural exports since the establishment of China Export & Credit Insurance Corporation, firstly, this paper get the superiority of agricultural export credit insurance compared to the traditional ways of export subsidies by using the basic economic principles and econometrics tools. Later, we analyze the problems of the agricultural export credit insurance combined the typical cases, and we theoretically analyze the agricultural export credit insurance how impact on the best export by building a profit function of agricultural products export enterprises. Then, we empirically test the support of agricultural products export credit insurance on export of agricultural products by econometrics tools. And also, we issue the countermeasures for developing China's agricultural export credit insurance.The main conclusions of this research are as following. Firstly, China's agricultural export credit insurance started later and developed slower than the other countries, and the growth rate has always lagged behind export credit insurance except the year 2005, and the gap is widening. Secondly, the rate of our agricultural export credit insurance is in a lower condition in the whole export credit insurance, and the trend is becoming lower and lower. Compared with the great export trade, the penetration rate of China's agricultural export credit insurance is obviously lower. Thirdly, the policy environment of developing agricultural export credit insurance is relaxed, which has great meaning to develop, especially compare with the traditional way of subsidies, but now, there are lots of problems exist in its development. Fourthly, a stable cointegration exists between China's agricultural export credit insurance and e agricultural products'export trade, when the former one is growing up, the latter one will inevitably increase. The mainly innovation of this research may go like this:on one hand, perspective is a new one. Researches on the agricultural export credit insurance are less fragmented and simple in nowadays China, and which does not form the system. On the other hand, using new research methods. In this paper, base on the empirical data, the writer combined the methods of comparative analysis and case studies combined the methods of theoretical analysis and econometric model analysis, in order to test empirically on export credit insurance on impacting China's agricultural export trade.