IDEAS home Printed from https://ideas.repec.org/p/ags/aaea26/404676.html

Economic Diplomacy and Agricultural Trade

Author

Listed:
  • Uduwe Welage, Naduni
  • Afesorgbor, Sylvanus
  • Lim, Sunghun
  • Lynn, Kennedy

Abstract

This study addresses the major research gap in understanding how diplomatic ties and regional integration affect agricultural trade and how these two instruments complement each other. Utilizing a panel dataset that covers over 250 countries over the period of 1986–2019, we estimated structural gravity model controlling for multilateral resistance and correcting for selection bias. Findings indicate that compared to regional integration, bilateral diplomatic exchange is more significant in determining the agricultural trade flows. We find lack of complementarity between the two instruments, indicating that when countries are regionally integrated, it lessens the space for bilateral diplomatic ties.

Suggested Citation

  • Uduwe Welage, Naduni & Afesorgbor, Sylvanus & Lim, Sunghun & Lynn, Kennedy, 2026. "Economic Diplomacy and Agricultural Trade," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404676, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404676
    DOI: 10.22004/ag.econ.404676
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/404676/files/177632_197905_115232_Coverpage_Manuscript_Economic_Diplomacy_and_Agricultural_Trade.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.404676?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mario Larch & Jeff Luckstead & Yoto V. Yotov, 2024. "Economic sanctions and agricultural trade," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(4), pages 1477-1517, August.
    2. Keith Head & John Ries, 2010. "Do trade missions increase trade?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(3), pages 754-775, August.
    3. Emmanuelle Lavallée & Julie Lochard, 2022. "International trade and face-to-face diplomacy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(4), pages 987-1010, November.
    4. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    5. Jonathan D Moyer & Sara D Turner & Collin J Meisel, 2021. "What are the drivers of diplomacy? Introducing and testing new annual dyadic data measuring diplomatic exchange," Journal of Peace Research, Peace Research Institute Oslo, vol. 58(6), pages 1300-1310, November.
    6. Jason H. Grant & Kathryn A. Boys, 2012. "Agricultural Trade and the GATT/WTO: Does Membership Make a Difference?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 1-24.
    7. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    8. Gary Clyde Hufbauer & Jeffrey J. Schott, 2005. "NAFTA Revisited: Achievements and Challenges," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 332, October.
    9. Baier, Scott L. & Yotov, Yoto V. & Zylkin, Thomas, 2019. "On the widely differing effects of free trade agreements: Lessons from twenty years of trade integration," Journal of International Economics, Elsevier, vol. 116(C), pages 206-226.
    10. Sylvanus Kwaku Afesorgbor & Eugene Beaulieu, 2021. "Role of international politics on agri‐food trade: Evidence from US–Canada bilateral relations," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 27-35, March.
    11. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    12. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    13. Sylvanus Kwaku Afesorgbor, 2019. "Regional Integration, Bilateral Diplomacy and African Trade: Evidence from the Gravity Model," African Development Review, African Development Bank, vol. 31(4), pages 492-505, December.
    14. Emmanuelle Lavallée & Julie Lochard, 2022. "International trade and face-to-face diplomacy," Post-Print hal-03578849, HAL.
    15. Anna Andersson, 2019. "The trade effect of private standards," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 267-290.
    16. Jason H. Grant & Dayton M. Lambert, 2008. "Do Regional Trade Agreements Increase Members' Agricultural Trade?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 765-782.
    17. Chad Bown & Kara Reynolds, 2015. "Trade flows and trade disputes," The Review of International Organizations, Springer, vol. 10(2), pages 145-177, June.
    18. Tim Josling, 2009. "Chapter 10 Agricultural Trade Disputes in the WTO," Frontiers of Economics and Globalization, in: Trade Disputes and the Dispute Settlement Understanding of the WTO: An Interdisciplinary Assessment, pages 245-282, Emerald Group Publishing Limited.
    19. 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, January.
    20. Yoto V. Yotov, 2022. "On the role of domestic trade flows for estimating the gravity model of trade," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 526-540, July.
    21. Lin, Qi & Lin, Xi, 2023. "Unveiling the trade and welfare effects of regional services trade agreements: A structural gravity approach," Economic Modelling, Elsevier, vol. 127(C).
    22. Robin Visser, 2019. "The effect of diplomatic representation on trade: A panel data analysis," The World Economy, Wiley Blackwell, vol. 42(1), pages 197-225, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carter, Colin A. & Steinbach, Sandro & Zhuang, Xiting, 2022. "Global Shipping Container Disruptions and U.S. Agricultural Exports," Working Papers 320397, International Agricultural Trade Research Consortium.
    2. Carter, Colin A. & Steinbach, Sandro & Zhuang, Xiting, 2022. "Global Container Trade Disruptions and U.S. Agricultural Exports," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322364, Agricultural and Applied Economics Association.
    3. Sylvanus Kwaku Afesorgbor & Dela‐Dem Doe Fiankor & Binyam Afewerk Demena, 2024. "Do regional trade agreements affect agri‐food trade? Evidence from a meta‐analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 737-759, June.
    4. Mario Larch & Jeff Luckstead & Yoto V. Yotov, 2024. "Economic sanctions and agricultural trade," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(4), pages 1477-1517, August.
    5. Franco Riottini Depetris, 2024. "Do Ambassadors Matter? The effect of ambassadors on trade promotion," Young Researchers Working Papers 15, Universidad de San Andres, Departamento de Economia, revised Aug 2024.
    6. Mlinarić Danijel & Jošić Hrvoje & Vlahov Antonio, 2026. "Economic Diplomacy and Bilateral Trade Flows in Times of Crisis: Evidence from Croatia," Business Systems Research, Sciendo, vol. 17(1), pages 302-322.
    7. Yang, Yichen & Liu, Wen, 2024. "Free trade agreements and domestic value added in exports: An analysis from the network perspective," Economic Modelling, Elsevier, vol. 132(C).
    8. Kodila-Tedika, Oasis & Khalifa, Sherif, 2024. "The causes and consequences of official diplomatic visits: A survey," Research in Economics, Elsevier, vol. 78(3).
    9. Riottini Depetris Franco, 2024. "Do Ambassadors Matter? The effect of ambassadors on trade promotion," Asociación Argentina de Economía Política: Working Papers 4757, Asociación Argentina de Economía Política.
    10. Ridwan Ah Sheikh & Sunil Kanwar, 2025. "Revisiting the impact of TRIPS on trade: Evidence from staggered difference-in-differences," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2025-025, Indira Gandhi Institute of Development Research, Mumbai, India.
    11. Daniele Curzi & Martijn Huysmans & Oliver Ken Haase, 2023. "Potable Intellectual Property: WTO TRIPS and EU Geographical Indication Wines," Working Papers 2311, Utrecht School of Economics.
    12. Ridwan Ah Sheikh & Sunil Kanwar, 2024. "Revisiting the Impact of TRIPS on IPR-intensive Export Flows: Evidence from Staggered Difference-in-Differences," Working papers 351, Centre for Development Economics, Delhi School of Economics.
    13. McDougall, Brendan S. & Afesorgbor, Sylvanus Kwaku, 2020. "The Effect of Free Trade Agreements on the Intensive and Extensive Margins of Canadian Agri-Food Trade," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304486, Agricultural and Applied Economics Association.
    14. Doyoung Park & William Ridley, 2025. "Thirsty for Trade: How Globalization Shapes Virtual Water Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(2), pages 279-338, February.
    15. Yoto V. Yotov, 2024. "The evolution of structural gravity: The workhorse model of trade," Contemporary Economic Policy, Western Economic Association International, vol. 42(4), pages 578-603, October.
    16. Antoni Estevadeordal & Gaston Nievas, 2024. "Trade and diplomacy Economic determinants of international cooperation agreements and its effect on international trade in the post World War II era: 1945-2022," PSE Working Papers halshs-04721902, HAL.
    17. Lisandra Flach & Inga Heiland & Mario Larch & Marina Steininger & Feodora A. Teti, 2024. "Quantifying the partial and general equilibrium effects of sanctions on Russia," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 281-323, February.
    18. Xing Yao & Yongzhong Zhang & Rizwana Yasmeen & Zhen Cai, 2021. "The impact of preferential trade agreements on bilateral trade: A structural gravity model analysis," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-20, March.
    19. Fabio Gaetano Santeramo & Emilia Lamonaca, 2022. "Standards and regulatory cooperation in regional trade agreements: What the effects on trade?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1682-1701, December.
    20. Sylvanus Kwaku Afesorgbor, 2018. "Economic diplomacy in Africa: the impact of regional integration versusbilateral diplomacy on bilateral trade," Chapters, in: Research Handbook on Economic Diplomacy, chapter 20, pages 326-346, Edward Elgar Publishing.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea26:404676. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.