The Study On The Trade Effect And Deficiencies Of Chinese Export Credit Insurance

International trade is the important component of domestic economy, which makes a significant contribution to Chinese economic increase. However, due to the sustaining effect of financial crisis, Chinese export enterprises are in the face of more complicated situations home and abroad, not only involving fierce international competition and trade protectionisms, but also domestic financing problems, etc., and all of these obstacle the further development of Chinese export trade. As a protection mechanism against export risk and a politically financial tool, export credit insurance has positive effects on receivables protection, international markets expansion and financing convenience. Besides, as the politically financial tool within World Trade Organization permission, export credit insurance doesn’t belong to the traditional export subsidy, and therefore can effectively support national export. Because of the facts that scholars home and abroad don’t draw the unified conclusion on the effect of export credit insurance and the theoretical and empirical studies on the relevant field are needed to be processed, the study on the export credit insurance has its theoretical value. In addition, considering the fact that Chinese export credit insurance itself has deficiencies needed to be solved, the study on the export credit insurance also has its practical significance.In this dissertation, the research method is a combination of theoretical analysis and empirical study. The theoretical analysis discusses the trade effect of export credit insurance export through the mechanisms of trade uncertainty decline, cost decline and loss compensation. The empirical study involves econometrical study, practical statistics and case analysis. The econometrical study aims to discuss the relevance between export credit insurance and export trade via co-integration test and Granger test using monthly data, in which trade effect caused by export credit insurance has been further discussed. At the same time, the econometrical study draws the positive conclusion of the trade effect through impulse response function and variance decomposition under VAR model and the other two analyses also draw the same conclusion.The dissertation is divided into six chapters:The first chapter describes the background and the significance of the study, reviews the relevant literatures home and abroad from the level of nation, industry and enterprises, and concludes the research method, overall framework, innovation points and the deficiencies of the dissertation. The second chapter studies the nature, features and theoretical basis of export credit insurance in order to describe the trade effect of it theoretically. The third chapter sets the current development of Chinese export credit insurance as the background and studies whether the Chinese export credit insurance has the positive effect on export trade through econometrics, practical statistics and case analysis. The forth chapter elaborates the current problems of Chinese export credit insurance and analyzes the export credit insurance mechanisms of France and Japan in order to get enlightenment. The fifth chapter proposes appropriate policy recommendations for operation pattern, law protection and government support and insurance business development in order to resolve the current problems according to the analysis and empirical study above. The sixth chapter systematically summarizes the conclusions of this dissertation.Through the analysis and study above of export credit insurance, the following conclusions are achieved:the first one is export credit insurance has the function of trade uncertainty avoidance, cost saving and loss compensation and all of these contribute the growth of export trade. The second one is the econometrical analysis identifies the fact that there is co-integration relationship between export credit insurance and export trade and export credit insurance Granger causes the export trade. The export credit insurance has pulling effect on Chinese export, but the effect is weak, and the contribution level is higher in short term. The third one is export credit insurance has positive effects on Chinese export trade which is identified by practical statistics and case analysis. Export credit insurance can help Chinese export enterprises avoid commercial and political risks in international trade and decrease the uncertainty rate, cover their economic loss, help them expand international markets by supporting more flexible payment methods and solve financing problems. The decrease of risk management cost and financing cost leads to the export expansion and trade development. The forth one is compared with the export credit insurance institutions of developed countries, such as France and Japan, China still has the problems like lower insurance cover rate, higher premium rate and product structure and design deficiencies, etc. due to Chinese export credit insurance short history and defects in relevant mechanisms.According to the trade effect and current deficiencies of Chinese export credit insurance, some recommendations are here proposed. As for operation pattern, quoting competition mechanism in the export credit insurance supply market and establishing export enterprise association to manage export risks are proposed. As for law protection and government support, establishing professional laws, enlarging national support to export credit insurance are proposed. As for insurance business development, developing risk assessment systems, enhancing operation capability, developing business model and strengthening collaboration with commercial banks are proposed.