Economics at your fingertips  

China’s Economic Diplomacy and the Politics-Trade Nexus

Andreas Fuchs ()

No 609, Working Papers from University of Heidelberg, Department of Economics

Abstract: This article reviews the literature on the linkages between political tensions, economic diplomacy and international trade in the light of China’s rise in the global economy. The existing scholarly work suggests that economic diplomacy should be more pivotal in economic exchange with China than with Western market economies. In an econometric test, I analyze how diplomatic tensions, measured through foreign dignitaries’ meetings with the Dalai Lama, affect the likelihood of an official visit from a Chinese leader. The results show that the likelihood of the Chinese leadership traveling to a country is 13.6 percent lower if the country’s government receives the Dalai Lama in a given year but increases in the following year, supposedly to restore ties. This finding underlines that economic diplomacy is an important channel linking political climate and economic exchange between nations.

Keywords: economic diplomacy; international trade; embassies; political climate; state visits; leadership travel; emerging economies; China; Dalai Lama; Tibet (search for similar items in EconPapers)
Date: 2016-03-08
New Economics Papers: this item is included in nep-cna, nep-pol and nep-tra
Note: This paper is part of
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Frontdoor page on HeiDOK (text/html) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from University of Heidelberg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Gabi Rauscher ( this e-mail address is bad, please contact ).

Page updated 2023-06-01
Handle: RePEc:awi:wpaper:0609