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1 - Identifying and prioritizing the challenges of export insurance and guarantee system
Bagher Adabi Firouzjaee

The risks of exporters in international markets are covered by insurance and guarantee products. Therefore, the main purpose of this study is to identify and prioritize the challenges of export insurance and guarantee of the Iran's exporters. This research is applied in More

The risks of exporters in international markets are covered by insurance and guarantee products. Therefore, the main purpose of this study is to identify and prioritize the challenges of export insurance and guarantee of the Iran's exporters. This research is applied in terms of purpose and descriptive-survey in terms of methodology. The statistical population includes two groups of exporters (current and former customers of the Export Guarantee Fund of Iran) and from each group 90 exporters are selected based on Cochran sampling Technique. Then, the challenges of customers in using export insurance and guarantee are extracted through theoretical and empirical studies as well as credit insurance experts. Furthermore, a questionnaire (consists of 34 components) is prepared and its validity and reliability is confirmed by experts and Cronbach's alpha respectively. After that a questionnaire is distributed among selected exporters and analyzed by SPSS software. The most important challenges are related to the lack of exchange rate coverage program, low capital adequacy of Iran Export Guarantee Fund, non-acceptance of documents such as project progress and product purchase contract, instability of macroeconomic variables (such as exchange rate and inflation fluctuations), policy inconsistencies between public export credit institutions (such as export Guarantee Fund Iran and the Export Development Bank of Iran), restrictions on the issuance of foreign exchange guarantees for getting loans from foreign institutions, and weak financial relations between the export Guarantee Fund Iran and export credit agencies or other international institution. Finally, some policy implication are presented in three approaches of content (such as Establishing of foreign exchange hedge system and country risk reduction via an executive plan codification), behavioral (including facilitating the issuance process of insurance and guarantee services and setting the preferential insurance premium for SMEs) and structural (such as creating a special export insurance and guarantee program for SMEs and coordinating the activities of the Export Guarantee Fund and the Export Development Bank). Manuscript profile
Open Access Article
- Abstract Page
- Full-Text
2 - Identifying and prioritizing the challenges of export insurance and guarantee system
باقر ادبی فیروزجائی

Bagher Adabi Firouzjaee Abstract One of the governments' policy for export development is to cover political and commercial risks through the issuance of export insurance and guarantees products by export credit Agencies (ECA). In Iran, this plan is done by The More

Bagher Adabi Firouzjaee Abstract One of the governments' policy for export development is to cover political and commercial risks through the issuance of export insurance and guarantees products by export credit Agencies (ECA). In Iran, this plan is done by The Export Guarantee Fund of Iran (EGFI). The evidence indicates that the value of export insurance and guarantees product and also the number of exporters benefiting from them are low. Therefore, the main purpose of this study is to identify and prioritize the challenges of export insurance and guarantee products in the country based on the SBC approach. In addition, this study has been carried out by analytical-descriptive-survey method. In this approach after surveying of theoretical and experimental studies and obtaining the opinions of experts, the main challenges of exporters in using of export insurance and guarantee services are collected in the form of a questionnaire (including 34 component). After confirming its validity and reliability, the questionnaire was distributed among the selected exporters (current and former customers of the EGFI) and analyzed by SPSS software. The results of the questionnaire analysis indicate that, the exporters are faced with three types of challenges including content factors (such as the lack of exchange rate coverage, high risk of export destination countries, Obligatory credits of government and low capital adequacy of the fund), behavioral factors (restriction in foreign guarantees issuance, weak financial brokerage relations of the fund with foreign financial institution, lack of preferential insurance premiums, shortage of diversity of insurance instruments and weakness of electronic infrastructure) and structural factors (collateral problems, lack of policy coordination between the guarantee fund and Export Development Bank, lack of a comprehensive online risk map and Absence of export insurance and guarantee program for SME industries). Finally, some policy implication are presented in based on the three categories of factors mentioned. Manuscript profile

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