The Weight of Economic and Commercial Diplomacy

International Institute of Social Studies (ISS) Working Paper No. 478, August 2009

31 Pages Posted: 8 Sep 2009  

Mina Yakop

affiliation not provided to SSRN

Peter A. G. van Bergeijk

Erasmus University - Institute of Social Studies (ISS); CERES, Research School for Resource Studies for Development

Date Written: August 30, 2009

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.

Keywords: gravity model, development, south–south trade, diplomacy

JEL Classification: F19, F55, F59, O19, O24

Suggested Citation

Yakop, Mina and van Bergeijk, Peter A. G., The Weight of Economic and Commercial Diplomacy (August 30, 2009). International Institute of Social Studies (ISS) Working Paper No. 478, August 2009. Available at SSRN: https://ssrn.com/abstract=1469137 or http://dx.doi.org/10.2139/ssrn.1469137

Mina Yakop

affiliation not provided to SSRN ( email )

Peter A.G. Van Bergeijk (Contact Author)

Erasmus University - Institute of Social Studies (ISS) ( email )

PO Box 29776
2502 LT The Hague, 2518 AX
Netherlands

HOME PAGE: http://www.economie.blogspot.com

CERES, Research School for Resource Studies for Development

Vredenburg 138
Utrecht, 3511 BG
Netherlands

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