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Sizing Up the Impact of Embassies on Exports

Shon Ferguson () and Rikard Forslid ()

No 2017:3, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: The purpose of this study is to test for the effects of trade promotion via the foreign service. Heterogeneous firms trade theory predicts that unilateral trade promotion allows medium sized firms to export. We investigate the effects of trade promotion using firm-level data and information on the opening and closing of embassies abroad from the very similar neighboring countries Sweden and Norway. We use a difference-in-difference specification where firms from Norway are used as a control group for Swedish firms. Our results show that large firms as well as medium sized firms respond to the opening of embassies.

Keywords: heterogeneous firms; trade promotion (search for similar items in EconPapers)
JEL-codes: D21 D22 F12 F15 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2017-06-26
New Economics Papers: this item is included in nep-eur and nep-int
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Related works:
Journal Article: Sizing Up the Impact of Embassies on Exports (2019) Downloads
Working Paper: Sizing Up the Impact of Embassies on Exports (2014) Downloads
Working Paper: Sizing Up the Impact of Embassies on Exports (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2017_0003

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