Like Me, Buy Me: The Effect of Soft Power on Exports

Andrew Rose

No GRU_2016_015, GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit

Abstract: In this paper I quantify a gain that a country receives when its global influence is considered to be admirable by others. I use a standard gravity model of bilateral exports, a panel of data from 2006 through 2013, and an annual survey conducted for the BBC by GlobeScan which asks people in up to 46 countries about whether each of up to 17 countries were perceived to have “a mainly positive or negative influence in the world.” Holding other things constant, a country’s exports are higher if it is perceived by the importer to be exerting more positive global influence. This effect is statistically and economically significant; a one percent net increase in perceived positive influence raises exports by around .8 percent. Succinctly, countries receive a commercial return on their soft power.

Keywords: empirical; panel; model; data; gravity; positive; negative; net; world; global; BBC; influence (search for similar items in EconPapers)
JEL-codes: F14 F59 (search for similar items in EconPapers)
Pages: 25 pages
New Economics Papers: this item is included in nep-int
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Published in Economics and Politics, Volume 28, Issue 2, Pages 216-232

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https://www.cb.cityu.edu.hk/ef/doc/GRU/WPS/GRU%232 ... w%20K_%20Rose(1).pdf (application/pdf)

Related works:
Journal Article: Like Me, Buy Me: The Effect of Soft Power on Exports (2016)
Working Paper: Like Me, Buy Me: The Effect of Soft Power on Exports (2015)
Working Paper: Like Me, Buy Me: The Effect of Soft Power on Exports (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cth:wpaper:gru_2016_015

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