The Role Of Export Credit Insurance To Our Country Export Trade Research

Export credit insurance is an insurance policy and a risk management productoffered by export credit agencies to business entities wishing to protect their revenuesfrom loss due to political risk and commercial risk. As an important overlapping areaof international finance and international trade, export credit insurance supports thedevelopment of the foreign trade in the process of economic globalization.China’s export credit insurance started late. But after years of development, thefunctions of China’s export credit insurance have improved steadily and it has becomea reasonable guide to China’s foreign trade. This paper systematically studies the roleof export credit insurance in the support of China’s export. The paper summarizes thecharacteristics of the development of China’s export and the problems that China’sexport enterprises face. Then, it finds that export credit insurance significantly supportsthe growth of China’s export trade through data analysis and empirical test. What’smore, the paper also finds that the export credit insurance actively cooperates withChina’s overall economic policies and promotes the adjustment of trade structure.Furthermore, it analyzes that the export credit insurance plays a major role inprotecting export enterprises from risks and in assisting export enterprises to obtainfinancing.Export credit insurance plays an increasingly important role in promoting China’sforeign trade. Therefore, it is a necessary and vital issue to develop export creditinsurance effectively in the new trading environment.