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State visits and international trade

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  • Nitsch, Volker

Abstract

Politicians travel extensively abroad, for various reasons. One purpose of external visits is to improve bilateral economic relations. In this paper, I examine the effect of state visits on international trade. I use a large data set covering the travel activities of the heads of state of France, Germany and the United States between 1948 and 2003. My results indicate that state and official visits are indeed positively correlated with exports. A typical visit is associated with higher bilateral exports by about 8 to 10 per cent, holding other things constant. --

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Bibliographic Info

Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2007/3.

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Date of creation: 2007
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Handle: RePEc:zbw:fubsbe:20073

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Keywords: head; president; government; politics; gravity;

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References

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  1. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  2. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  3. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, American Economic Association, vol. 94(1), pages 98-114, March.
  4. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, 01.
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Citations

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Cited by:
  1. Filippo Vergara Caffarelli & Giovanni Veronese, 2013. "Italy’s system for supporting internationalization," Questioni di Economia e Finanza (Occasional Papers) 196, Bank of Italy, Economic Research and International Relations Area.
  2. Christian Volpe Martincus & Jerónimo Carballo & Andrés Gallo, 2010. "The Impact of Export Promotion Institutions on Trade: Is It the Intensive or the Extensive Margin?," IDB Publications 36765, Inter-American Development Bank.
  3. Moons, S.J.V. & van Bergeijk, P.A.G., 2013. "A meta-analysis of economic diplomacy and its effect on international economic flows," ISS Working Papers - General Series, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague 50074, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  4. Andrew J. Cassey, 2008. "California's Exports and the 2004 Overseas Office Closures," Working Papers, School of Economic Sciences, Washington State University 2008-28, School of Economic Sciences, Washington State University.
  5. Petra Bubáková, 2013. "Gravity Model of International Trade, Its Variables, Assumptions, Problems and Applications," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2013(2), pages 3-24.
  6. Yakop, M. & van Bergeijk, P.A.G., 2009. "The weight of economic and commercial diplomacy," ISS Working Papers - General Series, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague 18715, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  7. Christian Volpe Martincus & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information Barriers, Export Promotion Institutions, and the Extensive Margin of Trade," IDB Publications 39358, Inter-American Development Bank.
  8. Salvador Gil-Pareja, 2011. "Do nonreciprocal preference regimes increase exports?," ERSA conference papers ersa11p1561, European Regional Science Association.
  9. Andrew J. Cassey, 2010. "State Trade Missions," Working Papers, School of Economic Sciences, Washington State University 2010-13, School of Economic Sciences, Washington State University.
  10. Rubén Segura-Cayuela & Josep M. Vilarrubia, 2008. "Uncertainty and entry into export markets," Banco de Espa�a Working Papers 0811, Banco de Espa�a.
  11. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Export Promotion: Heterogeneous Programs and Heterogeneous Effects," IDB Publications 36759, Inter-American Development Bank.
  12. Inês Veloso Ferreira & Aurora A. C. Teixeira, 2012. "Organizational Characteristics and Performance of Export Promotion Agencies: Portugal and Ireland compared," GEE Papers, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação 0046, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Jan 2012.
  13. Gil-Pareja, Salvador & Llorca-Vivero, Rafael & Martínez-Serrano, José Antonio, 2014. "Do nonreciprocal preferential trade agreements increase beneficiaries' exports?," Journal of Development Economics, Elsevier, Elsevier, vol. 107(C), pages 291-304.
  14. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, Elsevier, vol. 76(1), pages 89-106, September.
  15. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Is Export Promotion Effective in Developing Countries? Firm-Level Evidence on the Intensive and Extensive Margins of Exports," IDB Publications 36763, Inter-American Development Bank.
  16. Mahmut Yasar & David Lisner & Roderick Rejesus, 2012. "Bilateral trade impacts of temporary foreign visitor policy," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 148(3), pages 501-521, September.

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