The Effects of Bilateral Attitudes on Imports

The World Economy, Forthcoming

Posted: 18 May 2021

See all articles by Xiaohua Bao

Xiaohua Bao

Shanghai University of Finance and Economics

Qing Liu

Renmin University of China

Larry D. Qiu

The University of Hong Kong - Faculty of Business and Economics; Hong Kong University of Science & Technology (HKUST) - Department of Economics

Daming Zhu

Shanghai Pudong Development Bank

Multiple version iconThere are 2 versions of this paper

Date Written: May 14, 2021

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 favorable 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 Dongxiao and Qiu, Larry Dongxiao and Zhu, Daming, The Effects of Bilateral Attitudes on Imports (May 14, 2021). The World Economy, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3846078

Xiaohua Bao

Shanghai University of Finance and Economics

Qing Liu (Contact Author)

Renmin University of China ( email )

Larry Dongxiao Qiu

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

School of Economics and Finance
University of Hong Kong
Pokfulam
Hong Kong

HOME PAGE: http://www.bm.ust.hk/~larryqiu/

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Daming Zhu

Shanghai Pudong Development Bank

No.12 Zhongshan Dong Yi Road
Shanghai
China

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