The effect of export insurance subsidy on export supply: The experience of Japan

Abstract

Japan has been the heaviest user of the export insurance system. This paper examines whether or not export insurance subsidy has promoted Japan's export supply. The current study starts from examining the stationarity nature of the concerned variables. The unit root tests show that all concerned variables are non-stationary. The concerned variables are revealed to be not cointegrated. The empirical evidences show that export insurance system has not contributed to promoting export supply in Japan. © 2006 Elsevier Inc. All rights reserved.