The Foreign Service and Foreign Trade: Embassies as Export Promotion

Andrew Rose

No 4953, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 6-10% 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.

Keywords: International; Import; Destination; Country; Empirical; Data; Panel; Consulate; Gravity (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-afr and nep-int
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: The Foreign Service and Foreign Trade: Embassies as Export Promotion (2007)
Working Paper: The Foreign Service and Foreign Trade: Embassies as Export Promotion (2005)
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