The Foreign Service and Foreign Trade: Embassies as Export Promotion

Andrew Rose

The World Economy, 2007, vol. 30, issue 1, 22-38

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 22 large exporters and 200 import destinations. Bilateral exports rise by approximately six to ten per cent 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.

Date: 2007
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https://doi.org/10.1111/j.1467-9701.2007.00870.x

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