The Effects of Bilateral Attitudes on Imports

17 Pages Posted: 7 Jun 2020

See all articles by Xiaohua Bao

Xiaohua Bao

Shanghai University of Finance and Economics

Qing Liu

Renmin University of China

Larry D. Qiu

affiliation not provided to SSRN

Daming Zhu

Shanghai Pudong Development Bank

Multiple version iconThere are 2 versions of this paper

Date Written: February 2020

Abstract

Research based on the gravity model has shown that non‐economic factors affect international trade, and recent studies have shown that people's perception affects economic exchange. In this study, we explore the effects of attitudes on bilateral trade. Using survey data from the Pew Research Center's Global Attitudes Projects for 68 countries from 2002 to 2015, we find that a more favourable attitude of a country towards another country will increase the former country's imports from the latter. The result is robust to an endogeneity check, to different measures of attitudes and to different estimation methods. However, heterogeneity is observed across different types of goods and countries. The result holds for trade in intermediate and consumer goods, but the effects are not statistically significant for capital goods. The effects are statistically significant for bilateral trade between different country groups, except for high‐income countries' imports from non‐high‐income countries.

Keywords: attitude, trade

Suggested Citation

Bao, Xiaohua and Liu, Qing and Qiu, Larry D. and Zhu, Daming, The Effects of Bilateral Attitudes on Imports (February 2020). The World Economy, Vol. 43, Issue 2, pp. 371-387, 2020, Available at SSRN: https://ssrn.com/abstract=3621008 or http://dx.doi.org/10.1111/twec.12867

Xiaohua Bao (Contact Author)

Shanghai University of Finance and Economics

Qing Liu

Renmin University of China

Room B906
Xianjin Building
Beijing, Beijing 100872
China

Larry D. Qiu

affiliation not provided to SSRN

No Address Available

Daming Zhu

Shanghai Pudong Development Bank

No.12 Zhongshan Dong Yi Road
Shanghai
China

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