Özet:

There are crucial differences between exporting to a lesser-known market and exporting to a well-known market. I define a well-known (lesser-known) market if exporters have complete (incomplete) information about importers' characteristics such as contract viability. This risk premium between a well-known market and a lesser-known market causes lower export volume to lesser-known markets. I find that government-supported export insurance policies can increase the total volume of exports to lesser-known markets. Moreover, this paper argues that mostly medium-sized firms are getting benefits from this policy.

Anahtar Kelimeler: