Saborowski, ChristianChauffour, Jean-PierreSoylemezoglu, Ahmet I.2014-09-022014-09-022010-01https://hdl.handle.net/10986/19946New data on export insurance and guarantees suggest that publicly backed export credit agencies have played a role to prevent a complete drying up of trade finance markets during the current financial crisis. Given that export credit agencies are mainly located in advanced and emerging economies, the question arises whether developing countries that are not equipped with these agencies should establish their own agencies to support exporting firms and avoid trade finance shortages in times of crisis. This paper highlights a number of issues requiring attention in the decision whether to establish such specialized financial institutions. It concludes that developing countries should consider export credit agencies only when certain pre-requirements in terms of financial capacity, institutional capability, and governance are met.en-USCC BY 3.0 IGOACCESS TO EXTERNAL FINANCEACCESS TO FINANCEAMOUNT OF CREDITBALANCE OF PAYMENTBALANCE SHEETSBANK POLICYBANKING ASSETSBANKING SYSTEMBANKING SYSTEMSBENEFICIARIESBORROWERBORROWINGBROAD MONEYCAPITAL LOANSCAPITAL STOCKCHAMBER OF COMMERCECODE OF CONDUCTCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMPETITIVE MARKETSCORPORATE GOVERNANCECREDIT AGENCIESCREDIT AGENCYCREDIT ARRANGEMENTSCREDIT AVAILABILITYCREDIT CULTURECREDIT GUARANTEECREDIT POLICYCREDIT RATINGSCREDIT RISKCREDIT RISKSCREDIT SPREADSCROSS-BORDER TRANSACTIONSDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT FINANCEDEVELOPMENT FINANCE INSTITUTIONSDIRECT CREDITDOMESTIC CREDITDOMESTIC ECONOMYDOMESTIC MARKETSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CRISISECONOMIC DEVELOPMENTEMERGING ECONOMIESEMERGING MARKETSENVIRONMENTAL EXTERNALITIESEXPENDITUREEXPORT BASEEXPORT COMPETITIVENESSEXPORT CREDITEXPORT CREDITSEXPORT FINANCINGEXPORT MARKETSEXPORT SECTOREXPORTEREXPORTERSEXPOSUREEXTERNAL FINANCEFINANCE INITIATIVEFINANCE PRODUCTSFINANCIAL CAPACITYFINANCIAL CRISISFINANCIAL DEPTHFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL OBLIGATIONFINANCIAL PRODUCTSFINANCIAL REGULATIONFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SYSTEMFINANCIAL SYSTEMSFLOWS OF CAPITALFOREIGN BUYERFOREIGN COMPANYFOREIGN TRADEGLOBAL TRADEGOOD GOVERNANCEGOVERNANCE PRACTICESGOVERNMENT INTERVENTIONGOVERNMENT INVOLVEMENTGROWTH RATESGUARANTEE SCHEMEGUARANTORINCOMEINCOME GROUPSINDUSTRIAL COUNTRIESINFORMATION ASYMMETRIESINSTITUTIONAL CAPACITYINSURANCEINSURANCE INDUSTRYINSURERINSURERSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL COMPETITIONINTERNATIONAL ECONOMICSINTERNATIONAL LAWINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTMENT FINANCEISSUANCELETTER OF CREDITLETTERS OF CREDITLIQUIDITYLIQUIDITY CRISISLOANLONG-TERM FINANCELOW-INCOME COUNTRIESLOW-INCOME ECONOMIESMARKET FAILUREMARKET FAILURESMARKET PARTICIPANTSMARKET REGULATIONMATURITIESMATURITYMIDDLE-INCOME COUNTRIESMIDDLE-INCOME ECONOMIESNATIONAL SECURITYOPERATIONAL INDEPENDENCEOUTSOURCINGPERFORMANCE BONDPLEDGESPOLITICAL ECONOMYPOOL OF FUNDSPORTFOLIOSPRINCIPAL-AGENT PROBLEMSPRIVATE BANKSPRIVATE FINANCIAL INSTITUTIONSPRIVATE MARKETPRIVATE PARTIESPRIVATE SECTOR CREDITPROBABILITY OF DEFAULTPRUDENTIAL REGULATIONPUBLIC AGENCIESREAL SECTORRECESSIONREGULATORREGULATORSRESOURCE ALLOCATIONRISK MANAGEMENTRISK MANAGEMENT TOOLSRISK OF DEFAULTRISK PREMIARULE OF LAWRURAL CREDITRURAL CREDIT MARKETSSAVINGSSECONDARY MARKETSOCIAL COSTSOVEREIGN DEBTSOVEREIGN DEBT PROBLEMSSPECIAL FINANCINGSTATE GUARANTEESSTATE INTERVENTIONSTRONG GOVERNANCESUPPLY OF CREDITSYSTEMIC RISKTERM CREDITTRADE CREDITTRADE FINANCETRADE FINANCINGTRADE FLOWSTRADE POLICIESTRADE SECTORSTRADINGTRADING SYSTEMTRANSACTIONTREATYUNDERWRITERUNIONWORKING CAPITALWORLD ECONOMYWORLD TRADE10.1596/1813-9450-5166