The Foreign Service and Foreign Trade: Embassies as Export Promotion

Andrew Rose

No 11111, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: As communication costs fall, foreign embassies and consulates have lost much of their role in decision-making and information-gathering. Accordingly, foreign services are increasingly marketing themselves as agents of export promotion. I investigate whether exports are in fact systematically associated with diplomatic representation abroad. I use a recent cross-section of data covering twenty-two large exporters and two-hundred import destinations. Bilateral exports rise by approximately 6-10% for each additional consulate abroad, controlling for a host of other features including reverse causality. The effect varies by exporter, and is non-linear; consulates have smaller effects than the creation of an embassy.

JEL-codes: F13 (search for similar items in EconPapers)
Date: 2005-02
Note: ITI
References: View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Blackwell Publishing, vol. 30(1), pages 22-38, 01.

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Journal Article: The Foreign Service and Foreign Trade: Embassies as Export Promotion (2007)
Working Paper: The Foreign Service and Foreign Trade: Embassies as Export Promotion (2005)
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