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The Foreign Service and Foreign Trade: Embassies as Export Promotion

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  • Andrew K. Rose

Abstract

As communication costs fall, foreign embassies and consulates have lost much of their role in decision-making and information-gathering. Accordingly, foreign services are increasingly marketing themselves as agents of export promotion. I investigate whether exports are in fact systematically associated with diplomatic representation abroad. I use a recent cross-section of data covering 22 large exporters and 200 import destinations. Bilateral exports rise by approximately six to ten per cent for each additional consulate abroad, controlling for a host of other features including reverse causality. The effect varies by exporter, and is non-linear; consulates have smaller effects than the creation of an embassy. Copyright 2007 Blackwell Publishers Ltd (a Blackwell Publishing Company).

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 30 (2007)
Issue (Month): 1 (01)
Pages: 22-38

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Handle: RePEc:bla:worlde:v:30:y:2007:i:1:p:22-38

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