Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Effectiveness of export credit insurance in export performance of SMEs

수출신용보험이 중소기업의 수출 실적에 미치는 영향에 관한 연구

  • Xiaoyi Chen (Department of Economics and management, Hebei University of Environmental Engineering) ;
  • Xinchen Wang (Department of International Trade and Logistics, Graduate school, Chung-Ang University) ;
  • Po-Lin Lai (Department of International Logistics, College of Business and Economic, Chung-Ang University) ;
  • Thi Kim Cuc Nguyen (Department of International Trade and Logistics, Graduate school, Chung-Ang University)
  • Received : 2021.12.10
  • Accepted : 2021.12.28
  • Published : 2021.12.30
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Abstract

Small and medium-sized enterprises (SMEs) account for a large proportion of the total number of enterprises in many countries. The development of SMEs has contributed to job creation and economic benefits. Every government has formulated active diversification strategies to promote the export market of SMEs, but the performance of export capabilities remains insufficient. The primary purpose of this study is to examine the effectiveness of export credit insurance in promoting SME export performance in Canada. Using data from 2008-2017, the augmented Dickey-Fuller (ADF) model to test the stationarity of the concerned variables and the error correction model (ECM) and autoregressive distributed lag (ARDL) cointegration test to empirically investigate the cointegration relationship between the research targets. The results represent the positive and critical impact of export relative price and domestic demand pressure on Canada's export performance, and the negative impact of the export volume index at a significant level. Regrettably, the impact of export credit insurance on the export performance of Canadian SMEs is considered exaggerated overall. In view of this result, it is necessary for the Canadian government to enact policies based on the current market status. And enhance confidence among SMEs to begin exports and diversify their markets rather than focusing only on the domestic or US market, especially given the impact of COVID-19. From the case of Canada, Korean government can attempt to learn from them to conduct more efficient strategies for SMEs.

Keywords

Acknowledgement

This research was supported by the 4th Educational Training Program for the Shipping, Port and Logistics from the Ministry of Oceans and Fisheries.

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