The Economic Role of Diplomatic Representation in Promoting Exports

Authors

Tarbiat Modares University

Abstract

This study empirically investigates the effects of various variables emphasizing the role of economic diplomacy depicting by different forms of diplomatic representation offices, as well as bilateral and multilateral trading agreements, on the export flow. For this purpose, a modified form of the gravity model of trade is used by applying the cross-sectional data method for a group of 50 countries over the period 2012-2016. Additionally, this paper allows for a more detailed study of the trading structure of oil exporting countries by distinguishing between oil exports and other non-oil export commodities. The results indicate that membership in the WTO, along with multilateral trade agreements are important export determinants. Also, due to the existence of some dominated currency in the trading world, currency swap agreements don't still have much effect. The results also suggest that the oil exports are less influenced by diplomatic representations diversification compared with non-oil exports. Moreover some country groups such as East Asian countries have used their own trade offices more efficiently to promote exports while for the other types of missions, the impact is almost similar.

Keywords

References

بزرگی، وحید (1393)، دیپلماسی تجاری و ساختار نهادی آن، بررسی‌های بازرگانی، 68: 75-89.
Bagir, Y.,(2017). Impact of the Presence of Foreign Missions on Trade: Evidence from Turkey. Munich Personal RePEc Archive, Paper No. 80845.
Ciuriak, D. (2014). The Impact of Diplomatic Representation Abroad on Canada’s Exports. e-briefs 173, C.D. Howe Institute .
Dao, T.K. and van Bergeijk, P.A.G, (2018). Global trade finance, trade collapse and trade slowdown: a Granger causality analysis. Institute of Social Studies, PP 634.
Davis, C. and Meunier, S., (2006). Business as Usual: Econimic Resposes to Political Tensions. American Journal of Political Science, Vol. 55, No. 3, PP. 628-646.
Dizaji, S.F., (2018). Economic Diplomacy in Iran: reorientation of trade to reduce vulnerability. In: Bergeijk, P.A.G. van & Moons, S. (Eds). Research Handbook on Economic Diplomacy: Bilateral Relations in a Context of Geopolitical Change. Edward Elgar ,PP. 273- 296.
Gil-Pareja, S., Llorca-Vivero, R. and Martínez-Serrano, J.A., (2005). The impact of embassies and consulates on tourism. Tourism Management.
Moons, S.J.V. and de Boer, R., (2014). Economic diplomacy, product characteristics and the level of development. The ETSG 2014 conference.
Moons, S.J.V., & Peter A.G. van Bergeijk, (2013). A meta-analysis of economic diplomacy and its effect on international economic flows. International Institute of Social Studies of Erasmus University Rotterdam, Volume 28, Issue 2, PP 355-360.
Oh, C.H. and Selmier, W.T. (2008). Expanding International Trade Beyond the RTA Border: The Case of ASEAN’s Economic Diplomacy. Economics Letters, Volume 100, Issue 3, PP 385-387.
Rose, A.K., (2007). The Foreign Service and Foreign Trade: Embassies as Export Promotion, National Bureau of Economic Research (NBER). Centre for Economic Policy Research (CEPR), The World Economy, Blackwell Publishing, vol. 30, PP 22-38.
Segura-Cayuela, R. and Vilarrubia, J.M. (2008). The Effect of Foreign Service on Trade Volumes and Trade Partners. Banco de Espana Working ,Paper No. 0808.
ten Haaf, W.R.A. (2010). Commercial diplomacy and the role of embassies, From a target group perspective’ In the case of the Royal Netherlands Embassy in Malaysia. University  of Twente Faculty of Management and Governance Business Administration International Management.
 van Bergeijk, P. A.G. and Moons, P., (2014). Economic Diplomacy and Economic Security. International Institute of Social Studies of Erasmus University Rotterdam.
van Bergeijk, P. A.G., de Groot, H.L.F., and Yakop, M. (2011). The Economic Effectiveness of Diplomatic Representation: An Economic Analysis of its Contribution to Bilateral Trade. The Hague Journal of Diplomacy 6 ,PP 101-120.
van Bergeijk, P.A.G., (2017). One is not enough! An economic history perspective on world trade collapses and deglobalization International, Social Science Journal (Chinese edition) Vol. 34, No. 1, PP.17-30.
van Veenstre, M.L., Yakop, M. and van Bergeijk, P.A.G., (2010). Economic Diplomacy, the level of development and trade. Discussion papers in diplomacy, Netherlands Institute of International Relations ‘Clingendial’, PP. 1- 41.
Yakop, M. and van Bergeijk, P. A.G., (2009). The weight of economic and commercial diplomacy. International Institute of Social Studies of Erasmus University Rotterdam, Paper No. 478.

Files

History

  • Receive Date: 18 January 2019
  • Revise Date: 25 February 2019
  • Accept Date: 06 April 2019

Share

How to cite

Statistics