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Effect of Foreign Trade Credit Insurance on Foreign Trade

机译:外贸信用保险对外贸的影响

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摘要

Based upon the gravity model and data period of 1992~2013, this empirical research analyses the impact of Foreign trade Credit insurance as a determinant of bilateral trade volume between the Republic of Korea and its top ten trading partners. In order to overcome a potential endogeneity issue between trade volume and the insurance, we employ the dynamic panel analysis technique in addition to a time series-cross sectional pooling model, fixed effect model, and random effect model. Focusing on the effect of the insurance variable, we control the other important variables to influence the trade volume including gross domestic production and geographical distance. As expected, the insurance is found to be an important variable to determine the volume of bilateral trade flow in most models while the distance is a negative determinant of trade volume, as the gravity model implies. The empirical results, showing an increase of trade volume following an additional one unit of the insurance, implies that Korean trade would grow faster if shifting to large and close economies, as the gravity model tells, while the insurance can play a pivotal role to support those transactions.
机译:本研究基于引力模型和1992年至2013年的数据周期,分析了外贸信用保险作为大韩民国与其前十大贸易伙伴之间双边贸易额的决定因素的影响。为了克服交易量和保险之间的潜在内生性问题,除了时间序列-横截面合并模型,固定效应模型和随机效应模型之外,我们还采用动态面板分析技术。针对保险变量的影响,我们控制其他影响贸易量的重要变量,包括国内生产总值和地理距离。正如预期的那样,在大多数模型中,保险是确定双边贸易流量的重要变量,而距离是重力模型所隐含的贸易量的负决定因素。经验结果表明,在购买另一单位保险后,贸易量会增加,这表明,如引力模型所表明的那样,如果转向大型和封闭经济体,韩国贸易将增长更快,而保险可以在支持中发挥关键作用。这些交易。

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