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Economic Diplomacy and Agricultural Trade

Naduni Uduwe Welage, Sylvanus Afesorgbor, Sunghun Lim and Kennedy Lynn

No 404676, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: This study addresses the major research gap in understanding how diplomatic ties and regional integration affect agricultural trade and how these two instruments complement each other. Utilizing a panel dataset that covers over 250 countries over the period of 1986–2019, we estimated structural gravity model controlling for multilateral resistance and correcting for selection bias. Findings indicate that compared to regional integration, bilateral diplomatic exchange is more significant in determining the agricultural trade flows. We find lack of complementarity between the two instruments, indicating that when countries are regionally integrated, it lessens the space for bilateral diplomatic ties.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 30
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404676

DOI: 10.22004/ag.econ.404676

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