Research Handbook on Economic Diplomacy
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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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Chapter 10: Embassies matter for trade, but diplomats matter most: evaluation of Dutch economic diplomacy in Latin America

Phil Compernolle and Mark Vancauteren

Abstract

The authors investigate to what extent Dutch economic diplomacy explains trade with Latin America, employing a constructed firm-level dataset that links international trade with firm-level characteristics for the period 2006–11. They capture the role of economic diplomacy on the basis of a novel construct that weights each embassy on its attention to economic diplomacy. Furthermore, the authors include firms that made use of economic diplomacy but did not subsequently trade with Latin America during the study period. Their results suggest that economic diplomacy in the form of information services and trade missions has a significant and positive impact on firm-level exports to Latin America. Their results remain robust when they take into account the role of endogeneity, zero trade flows, unobserved firm-level heterogeneity and country-specific destinations.

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