International trade relies on trade finance (credit or insurance) by financial institutions. Evidence on the link between trade finance and trade is scarce, however, because trade finance data are hard to come by. This article uses a unique bilateral data set on worldwide exports insured by a world's leading private trade credit insurer in the period from 1992 to 2006. Applying various trade models, I consistently find a positive and statistically significant effect of private export credit insurance on exports. The results suggest that the private export credit insurance effect on trade is larger than the value of exports insured.

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International Monetary Fund (IMF)‐supported programmes catalyse private capital to non‐defaulting countries. We find the IMF to be effective in stimulating private capital flows to middle‐income countries that participate in a Fund programme, but do not restructure their debt. IMF‐supported programmes help non‐defaulting countries to signal their willingness to reform and repay debts, thereby catalysing private capital. This signalling role appears to be more important for Fund catalysis, than the size of IMF lending.

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