Trade credit insurance and asymmentric information problem

Olena Sokolovska

MPRA Paper from University Library of Munich, Germany

Abstract: The presence of different risk factors in international trade gives evidence of the necessity of support in gaps that may affect exporters’ activity. To maximize the trade volumes and in the same time to minimize the exporters’ risks the stakeholders use trade credit insurance. The paper provides analysis of conceptual background of the trade credit insurance in the world. We analyzed briefly the problems, arising in insurance markets due to asymmetric information, such as adverse selection and moral hazard. Also we discuss the main stages of development of trade credit insurance in countries worldwide. Using comparative and graphical analysis we provide a brief evaluation of the dynamics of claims and recoveries for different forms of trade credit insurance. We found that the claims related to the commercial risk for medium and long trade credits in recent years exceed the recoveries, while with the political risk the reverse trend holds. And we originally consider these findings in terms of information asymmetry in the trade credit insurance differentiated by type of risk.

Keywords: trade credit insurance; export credit; international trade; international finance (search for similar items in EconPapers)
JEL-codes: F10 F39 G22 (search for similar items in EconPapers)
Date: 2017-03
New Economics Papers: this item is included in nep-ias and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Scientific Annals of Economics and Business 64.1(2017): pp. 123-137

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/79057/1/MPRA_paper_79057.pdf original version (application/pdf)

Related works:
Journal Article: Trade Credit Insurance and Asymmetric Information Problem (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:79057

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().