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Like Me, Buy Me: The Effect of Soft Power on Exports

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  • Rose, Andrew

Abstract

In this paper I quantify a gain that a country receives when its global influence is considered to be admirable by others. I use a standard gravity model of bilateral exports, a panel of data from 2006 through 2013, and an annual survey conducted for the BBC by GlobeScan which asks people in up to 46 countries about whether each of up to 17 countries were perceived to have ?a mainly positive or negative influence in the world.? Holding other things constant, a country?s exports are higher if it is perceived by the importer to be exerting more positive global influence. This effect is statistically and economically significant; a one percent net increase in perceived positive influence raises exports by around .8 percent. Succinctly, countries receive a commercial return on their soft power.

Suggested Citation

  • Rose, Andrew, 2015. "Like Me, Buy Me: The Effect of Soft Power on Exports," CEPR Discussion Papers 10713, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10713
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    References listed on IDEAS

    as
    1. Rose, Andrew & Glick, Reuven, 2015. "Currency Unions and Trade: A Post-EMU Mea Culpa," CEPR Discussion Papers 10615, C.E.P.R. Discussion Papers.
    2. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    3. Gopinath, G. & Helpman, . & Rogoff, K. (ed.), 2014. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 4, number 4.
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    More about this item

    Keywords

    Bbc; Data; Empirical; Global; Gravity; Influence; Model; Negative; Net; Panel;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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