Sizing Up the Impact of Embassies on Exports

Shon Ferguson and Rikard Forslid

Scandinavian Journal of Economics, 2019, vol. 121, issue 1, 278-297

Abstract: The purpose of this study is to test for the effects of trade promotion via the foreign service. The theory of trade with heterogeneous firms predicts that unilateral trade promotion allows medium‐sized firms to export. We investigate the effects of trade promotion using firm‐level data and information on the opening and closing of embassies abroad from the very similar neighboring countries Sweden and Norway. We use a difference‐in‐difference specification where firms from Norway are used as a control group for Swedish firms. Our results show that large firms as well as medium‐sized firms respond to the opening of embassies.

Date: 2019
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Citations: View citations in EconPapers (3)

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https://doi.org/10.1111/sjoe.12260

Related works:
Working Paper: Sizing Up the Impact of Embassies on Exports (2017)
Working Paper: Sizing Up the Impact of Embassies on Exports (2014)
Working Paper: Sizing Up the Impact of Embassies on Exports (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:121:y:2019:i:1:p:278-297

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