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Economic Diplomacy And Its Relevance In Countries With Different Income Levels: A Perspective For Transition Economies

Author

Listed:
  • Mykhaylo Kunychka

    (University of Economics in Bratislava, The Republic of Slovakia)

  • Leonid Raneta

    (University of Economics in Bratislava, The Republic of Slovakia)

  • Diana Steblak

    (Uzhhorod National University, Ukraine)

Abstract

The study of the effectiveness of economic diplomacy has become a popular topic in the field of international economic relations. Recent trends are confirmed by a large number of academic studies focusing on the evaluation of the performance of diplomatic and consular offices abroad. This paper represents a new attempt to empirically examine the effectiveness of economic diplomacy using the example of a transition country, based on the activities of Ukrainian foreign representations. Over the last decade, this Eastern European state has experienced significant economic turbulence, political instability and a shift in the vector of foreign economic policy, which is the main impetus for the re-evaluation of its economic diplomacy. Using recent data on export flows, the authors apply a gravity model of trade to assess the impact of economic diplomacy on export activity. The results suggest that embassies are a more relevant means of promoting export flows to low- and middle-income countries.

Suggested Citation

  • Mykhaylo Kunychka & Leonid Raneta & Diana Steblak, 2023. "Economic Diplomacy And Its Relevance In Countries With Different Income Levels: A Perspective For Transition Economies," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 9(2).
    • Handle: RePEc:bal:journl:2256-0742:2023:9:2:2
    DOI: 10.30525/2256-0742/2023-9-2-19-33
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    economic diplomacy; income level; export promotion; transitive state;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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