State Visits and International Trade

24 Pages Posted: 9 Jun 2022 Last revised: 6 Sep 2022

Date Written: February 1, 2007

Abstract

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

Research, Hong Kong Institute for Monetary and Financial, State Visits and International Trade (February 1, 2007). The World Economy, 2007, 30(12): 1797-1816, Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 03/2007, Available at SSRN: https://ssrn.com/abstract=4130719

Hong Kong Institute for Monetary and Financial Research (Contact Author)

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