CREDIT INSURANCE IN THE MANAGEMENT OF COMMERCIAL RISKS AND THE INVESTIGATION OF ITS EFFECT ON ECONOMIC GROWTH, CAUSALITY ANALYSIS

Credit insurance is a risk management tool that secures the trade receivables of the suppliers arising from credit sales on open accounts against the commercial risks. the critical risk issues in our country still remain with regard to the commercial and political risks on exports which is mainly on open accounts and with regard to the domestic risks measured by bounced checks and protested notes. from the macroeconomic perspective, credit insurance is a trade finance instrument that affects the magnitude and the path of the local and the international trade flows and in turn the economic growth positively . in this study, the benefits of using credit insurance for companies have been analyzed and the effect of the growth of the credit insurance market on economic growth have been investigated by using the ampirical data. the private sector data which is mainly comprised of the insured local risks and the total sector data including private sector and turk eximbank have been evaluated seperately in this study. as the result of the study, it has been observed that the growth of the credit insurance market in both alternatives has an effect on economic growth as determined by granger causality test.