Tools used in financing foreign trade: Researching the effect of Turkish Eximbank credits on exports

The main objective of this research is to provide a general explanation of the instruments used in foreign trade finance and to analyze the impact of Turkish Eximbank credit programs, which play a significant role in increasing Turkey's exports, on export performance. Accordingly, the study presents an overview of foreign trade financing tools and examines the contribution of credits provided by Turkish Eximbank to export performance through both theoretical and empirical approaches. Based on the findings, policy recommendations are offered to guide decision-makers. The econometric analysis conducted on data covering the period from 1993 to 2024 applies unit root tests considering structural breaks and employs a time-varying parameter Bayesian vector autoregressive model (TVP-VAR). This methodological framework is based on the assumption that relationships between economic variables may vary over time. The results reveal a dynamic and bidirectional relationship between Turkish Eximbank credits and exports. It was concluded that the effect of credits on exports emerges with a certain lag but is generally positive and significant. Additionally, developments in export volumes also influence credit demand, indicating a reciprocal relationship between credit and exports. Compared to existing literature, this study offers a methodological innovation by using more flexible and time-varying analytical techniques and provides practical policy recommendations. The findings show that Turkish Eximbank has largely succeeded in its objective to support exports; however, the importance of more flexible credit structures and improvements in digital infrastructure, especially in the face of economic fluctuations, is emphasized. Accordingly, the study concludes that the inclusiveness of the export financing system should be enhanced, access to credit facilitated, and the effectiveness of financial instruments increased.