Political relations and service trade: evidence from a panel threshold model

Jing Wang and Jie Li

Applied Economics Letters, 2024, vol. 31, issue 9, 794-799

Abstract: This paper investigates linear and nonlinear impacts of political relations on China’s service trade import and export to 8 countries from 2005 to 2019. The result shows that positive effect of political relations on both service trade import and export can be obtained. Using a threshold model, it is found that when the trading country’s economy level reaches the first threshold, the role of political relations will change.

Date: 2024
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DOI: 10.1080/13504851.2022.2151972

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