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Sizing Up the Impact of Embassies on Exports
Stockholm University, Faculty of Social Sciences, Department of Economics.
Number of Authors: 22019 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 121, no 1, p. 278-297Article in journal (Refereed) Published
Abstract [en]

The purpose of this study is to test for the effects of trade promotion via the foreign service. The theory of trade with heterogeneous firms 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.

Place, publisher, year, edition, pages
2019. Vol. 121, no 1, p. 278-297
Keywords [en]
Heterogeneous firms, trade promotion
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-166849DOI: 10.1111/sjoe.12260ISI: 000456801400010OAI: oai:DiVA.org:su-166849DiVA, id: diva2:1294390
Available from: 2019-03-07 Created: 2019-03-07 Last updated: 2019-03-07Bibliographically approved

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