Publication detail

Credit Support for Export: Robust Evidence from the Czech Republic

MICHALÍKOVÁ, E. JANDA, K. SKUHROVEC, J.

Original Title

Credit Support for Export: Robust Evidence from the Czech Republic

Type

journal article - other

Language

English

Original Abstract

The topic of this paper is quite a novel one – it is one of few empirical academic papers dealing with export credit. Moreover, it is the first analysis of this kind which focuses on transition economies. The paper deals with export credit promotion in the Czech Republic. The development and structure of Czech trade and export support is presented first, followed by an econometric analysis of the gravity model of Czech Republic trade. A panel of 160 countries in 1996–2008 is analysed and two gravity models of exports for the Czech Republic are estimated, the static model by fixed effects (LSDV estimator) and the dynamic model by System GMM. Due to ambiguous conclusions we assume that the behaviour of our explanatory variables is not uniform and our data set behaves as a mixture of countries with heterogeneous behaviour. This means that traditional techniques of estimation which include all observations into one model do not give significant results. Thus, we use robust techniques of estimation that solve the problem of heterogeneous patterns in data sets. Out of several possibilities we use the Least Trimmed Squares estimator (LTS) with a leverage point. We show that guarantees are a significant factor that influences positively the volume of exports in the Czech Republic. Moreover, there exist more variables that affect the size of exports in the Czech Republic. Market forces described by GDP, distance, political risk or gross fix capital formation are significant in our econometric model. We find that higher GDP, shorter distance or lower political risk have a positive impact on Czech exports.

Keywords

government promotion, gravity model, panel data

Authors

MICHALÍKOVÁ, E.; JANDA, K.; SKUHROVEC, J.

RIV year

2013

Released

1. 12. 2013

ISBN

0378-5920

Periodical

WORLD ECONOMY

Year of study

36

Number

12

State

United Kingdom of Great Britain and Northern Ireland

Pages from

1588

Pages to

1610

Pages count

22

BibTex

@article{BUT103911,
  author="Eva {Michalíková} and Karel {Janda} and Jiří {Skuhrovec}",
  title="Credit Support for Export: Robust Evidence from the Czech Republic",
  journal="WORLD ECONOMY",
  year="2013",
  volume="36",
  number="12",
  pages="1588--1610",
  issn="0378-5920"
}