Abstract As a policy-based financial instrument for promoting export, export credit insurance aims to encourage the enterprises to expand export and exploit the overseas market, thus providing risk guarantee for domestic enterprises' export and investment in foreign countries. The paper investigates the impact effect of export credit insurance in promoting export trade growth using the foreign export volume of Zhejiang Province between 2003 and 2011, trade volume of 22 export industries and 230 exporting countries (regions), and the contemporary data on export credit insurance in Zhejiang Province as samples. The empirical result shows that the export credit insurance plays a significant role in promoting export. The export credit insurance plays a more significant role in leveraging the industries with a high risk, high value, and high external financing demand. The export credit insurance plays a more significant role in promoting exporting enterprises to export to developing countries or regions. Finally, the paper proposes the appropriate policy suggestions that the government should play an important role in the export credit insurance building a new system of open economy in our country, and the export credit insurance company should improve the ability to underwriting capacity and service for small and medium sized enterprises. It is necessary to expand the coverage of export credit insurance, and further promote upgrading transformation of China's export industry and accelerating the transformation of trade development mode.
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