Design of Export Credit Agencies

Abstract: Public export credit insurance is an important tool in export promotion. Both theory and empirics show that public export credit agencies (ECAs) are successful in mitigating financial constraints. This research uses a cross-section analysis to identify whether certain characteristics in the set-up of ECAs are related to higher yearly new commitments. The results show that formal government involvement, in particular in decision-making on transactions, is connected to lower levels of new commitments. Furthermore, ECAs that actively seek new customers enter into more new commitments than those that do not.