Federal Export Credit Guarantees of the Federal Republic of Germany (Hermes Credit Guarantees)

The Federal Republic of Germany insures under certain conditions export transactions against economic and political risk by export guarantees (Hermes Credit Guarantees). A major objective of this instrument is to support German export industries in their international competitiveness and thus to create and maintain jobs in Germany. The ifo institute’s center for international economics evaluates to what extent Hermes guarantees lead to job creation and increased value added effects in Germany and furthermore, how big these effects turn out to be. The research approach is empirical and uses modern methods of econometric policy evaluation. Effects of Hermes credit guarantees across different countries (different risk profiles) are analyzed based on aggregate trade statistics. Furthermore, industry and firm specific effects are elaborated based on micro-data from the ifo business cycle survey.