State Visits and International Trade
The World Economy, 2007, 30(12): 1797-1816
24 Pages Posted: 9 Jun 2022 Last revised: 6 Sep 2022
Date Written: February 1, 2007
This working paper was written by Volker Nitsch (Free University Berlin).
Politicians travel extensively abroad, for various reasons. One purpose of external visits is to improve bilateral economic relations. In this paper, I examine the effect of state visits on international trade. I use a large data set covering the travel activities of the heads of state of France, Germany and the United States between 1948 and 2003. My results indicate that state and official visits are indeed positively correlated with exports. A typical visit is associated with higher bilateral exports by about 8 to 10 percent, holding other things constant.
Keywords: head; president; government; politics; gravity
JEL Classification: F13
Suggested Citation: Suggested Citation