Can country trade flows benefit from improved corporate social responsibility ratings?

Shou-Lin Yang, Ariana Chang, Yen-Hsun Chen and Yung-Ming Shiu

Economic Modelling, 2019, vol. 80, issue C, 192-201

Abstract: We set out in this study to examine the effects of country ‘corporate social responsibility’ (CSR) ratings on the international trade flows of 28 countries. Drawing on categorization theory, we examine whether country CSR engagement is a categorizing factor capable of influencing the overall process of categorization. Based upon a two-stage approach, comprising of gravity and panel Tobit models, we find that a country's CSR rating has significantly positive effects on the country's international trade flows. When the CSR rating of a country is higher than that of another rival trading country, this will have significantly positive effects on the bilateral trade flows between the two countries.

Keywords: Trade flows; Corporate social responsibility; Gravity model; Panel Tobit model (search for similar items in EconPapers)
JEL-codes: C23 F14 M14 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:80:y:2019:i:c:p:192-201

DOI: 10.1016/j.econmod.2018.11.007

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