Country Image and International Trade

SMU Economics & Statistics Working Paper No. 29-2012

49 Pages Posted: 23 Jul 2012

See all articles by Pao-Li Chang

Pao-Li Chang

Singapore Management University - School of Social Sciences

Tomoki Fujii

Singapore Management University - School of Economics

Date Written: July 2012

Abstract

We study the impact of country image on international trade flows. We find that a one percentage point increase in the positive response ratio -- the proportion of people in the importing country who view the exporting country positively -- is associated with at least a one percent increase in the aggregate trade flow. By disaggregating trade flows by the type of goods, we also find that both homogeneous and differentiated goods are positively affected by better country image and that the impact of country image tends to be larger when more substitutes are available in the international market.

Keywords: boycott, trust, country of origin, gravity model, multilateral resistance

JEL Classification: F10, C33

Suggested Citation

Chang, Pao-Li and Fujii, Tomoki, Country Image and International Trade (July 2012). SMU Economics & Statistics Working Paper No. 29-2012. Available at SSRN: https://ssrn.com/abstract=2115998 or http://dx.doi.org/10.2139/ssrn.2115998

Pao-Li Chang

Singapore Management University - School of Social Sciences ( email )

469 Bukit Timah Road
Federal Building #02-05
Singapore, 259756
Singapore
+65 68220830 (Phone)
+65 68220833 (Fax)

Tomoki Fujii (Contact Author)

Singapore Management University - School of Economics ( email )

90 Stamford Road
178903
Singapore
+6568280279 (Phone)
+6568280833 (Fax)

HOME PAGE: http://www.mysmu.edu/faculty/tfujii/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
73
Abstract Views
775
rank
334,107
PlumX Metrics