Economic Value of Country Image: Evidence from International Trade and Implications for China

25 Pages Posted: 18 May 2017

See all articles by Yan Zhi

Yan Zhi

Shanghai Academy of Social Sciences (SASS)

Di Bao

University of Illinois at Urbana-Champaign

Changyuan Luo

Fudan University

Date Written: May–June 2017

Abstract

This paper examines the economic value of country image from the perspective of export prices through matching the CEPII export price data with the British Broadcasting Company country image data from 2006 to 2013. The estimation results show that positive country image has an “elevating” effect and negative country image has a “depressing” effect on export prices. The results also indicate that the lower the level of economic development of an export or import country, the stronger the export price effect of country image. As distances between export countries and trading partners increase, the elevating effect of positive country image on export prices becomes weaker. However, the depressing effect of negative country image does not become weaker over greater distances. We find that export prices are depressed by negative country image to a greater degree for China than for other countries. Therefore, it is necessary for China to prevent the occurrence of incidents detrimental to country image.

Keywords: country image, export prices, price discount, price premium

JEL Classification: F11, F14, F59, F63, O12

Suggested Citation

Zhi, Yan and Bao, Di and Luo, Changyuan, Economic Value of Country Image: Evidence from International Trade and Implications for China (May–June 2017). China & World Economy, Vol. 25, Issue 3, pp. 87-111, 2017, Available at SSRN: https://ssrn.com/abstract=2970277 or http://dx.doi.org/10.1111/cwe.12201

Yan Zhi (Contact Author)

Shanghai Academy of Social Sciences (SASS) ( email )

Shanghai
China

Di Bao

University of Illinois at Urbana-Champaign ( email )

202 Coble Hall
801 South Wright Street Champaign
Champaign, IL 61820
United States

Changyuan Luo

Fudan University

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
7
Abstract Views
234
PlumX Metrics