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The weight of economic and commercial diplomacy

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  • Yakop, M.
  • van Bergeijk, P.A.G.

Abstract

This paper investigates the impact of economic and commercial diplomacy on the geography of international trade. We replicate a recent study by Rose (2007) extending the analysis to include the year 2006 and 63 importing and exporting countries. Using a gravity model we are able to demonstrate that diplomatic representation via embassies and consulates is not a relevant trade enhancing factor for trade within the OECD. In contrast diplomatic representation is significant in bilateral trade relationships of developing countries as it both facilitates imports and stimulates exports. We discuss some implications of our findings for developing countries especially in view of South--South trade.

Suggested Citation

  • Yakop, M. & van Bergeijk, P.A.G., 2009. "The weight of economic and commercial diplomacy," ISS Working Papers - General Series 18715, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    • Handle: RePEc:ems:euriss:18715
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    Cited by:

    1. Cătălina BRATOSIN-VASILACHE & Liviu-George MAHA, 2022. "The Impact Of Economic Diplomacy On Foreign Trade. Empirical Evidence For The European Countries," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 53-67, December.
    2. Huub Ruel & Robin Visser, 2012. "Commercial diplomats as corporate entrepreneurs: explaining role behaviour from an institutional perspective," International Journal of Diplomacy and Economy, Inderscience Enterprises Ltd, vol. 1(1), pages 42-79.
    3. Gorazd Justinek & Tanja Sedej, 2012. "Measuring export support performance in Slovenia," International Journal of Diplomacy and Economy, Inderscience Enterprises Ltd, vol. 1(1), pages 80-94.

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    More about this item

    Keywords

    development; diplomacy; gravity model; south--south trade;
    All these keywords.

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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