Analysis of the Impact of Export Insurance Subsidy on Non-Oil Exports

Abstract

One of the main goals of developing countries is to achieve a sustainable economic growth. The exports promotion can directly help economic growth. Therefore, recognizing the factors influencing economic growth is of utmost important. Regarding the significance of factors affecting non-oil exports in trade policy making, this study aims to investigate the impact of exports insurance subsidy and other relevant variables on non-oil exports in Iran. To do this, the short- and long-term relationships between non-oil exports and exports insurance subsidy are estimated by Auto-Regressive Distributed Lags (ARDL) over the period 1995-2011. The results show that exports insurance subsidy is of positive effect on non-oil exports in both short- and long-term.

Keywords

• non-oil exports
• export insurance subsidy
• auto explanatory pattern with extensive breaks (ardl)