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Selwyn J.V. Moons

The author reviews 32 studies published between 1985 and 2012 that report 963 economic diplomacy coefficients by means of a meta-analysis. The meta-analysis shows (and corrects for) the influence of empirical design choices, the dependent variable under investigation and instruments of diplomacy used, on reported economic diplomacy coefficients. The reported results show that study characteristics and the instrument of diplomacy used in primary studies influence the reported outcome significantly. The meta-analysis shows that economic diplomacy research on average judges critically on the sign and significance of the lower ranked diplomatic establishments (consulates and export promotion agencies) and individual activities organized with the diplomatic network (trade missions and state visits). These establishments and activities are significantly more likely to report negative coefficients and less likely to deliver positive significant coefficients.

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Peter A.G van Bergeijk and Selwyn J.V. Moons

Peter A.G. van Bergeijk and Selwyn Moons discuss the emergence of the concept of economic diplomacy in the fields of Accounting, Business Economics, Conflict Studies, Development Studies, International Economics, International Relations, International Trade, Management Science, Peace Science, Political Science and Public Finance. The focus should be on bilateral activities such as nation branding, trade missions, trade fairs and network activities of embassies and consulates and the impact of these tools on import, export and Foreign Direct Investment. The field should extend beyond the traditional boundaries of commercial diplomacy and business diplomacy and also cover the not-for-profit-sector, including universities and other knowledge institutes, the health sector, the cultural sector, NGO’s etc. One key finding for research is the need to consider significant heterogeneities with respect to (the efficacy of) instruments, countries, institutions levels of development and behavior and decision-making of firms.

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Selwyn J.V. Moons and Remco de Boer

This chapter sheds light on the effect of different sorts of diplomatic activity on trade. The authors use an applied gravity model with developed and developing countries to assess the effect of economic diplomacy on exports. The chapter adds to the existing literature by providing the first comprehensive analysis that takes into account the different forms of diplomatic representation, the complexity of the traded product and the effect of diplomatic representations on the formation of bilateral trade relations (as opposed to expanding trade volumes). The authors’ findings show clear differences between diplomatic representations, with embassies having a stronger effect. Furthermore, there are strong differences between product groups, with economic diplomacy being more effective for more complex goods. These results hold for forming trade relations as well as expanding the volume of trade. The results are robust for various specifications, in particular for an innovative approach to confirm causality.

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Research Handbook on Economic Diplomacy

Bilateral Relations in a Context of Geopolitical Change

Edited by Peter A.G. van Bergeijk and Selwyn J.V. Moons

This Handbook positions economic diplomacy as a multidisciplinary field and presents state of the art research relevant to policy makers and academia around the globe focusing on four themes: the role of economic diplomats, the impact and evaluation of economic diplomacy, politics and trade and emerging markets. It offers academic, business and policy perspectives taking stock of knowledge produced with qualitative and quantitative research on Northern America, Europe, Africa, Asia and Latin America.
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Peter A.G van Bergeijk, Selwyn J.V. Moons and Christian Volpe Martincus

Based on suggestions for further research by individual authors in the chapters of the Handbook and an extended analysis of recent developments in the field, the final chapter by Peter van Bergeijk, Selwyn Moons and Christian Volpe Martincus puts the growing importance of bilateral economic diplomacy research in the context of the emerging trend towards deglobalization. The chapter develops and discusses the academic agenda for bilateral economic diplomacy research pointing out the need to broaden the scope of existing research and exploring the agenda of microeconomic economic diplomacy research. Finally, the chapter focuses on the potential for economic diplomacy to reduce trade uncertainty and vulnerability to trade shocks.