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State Visits and International Trade

Volker Nitschr
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Volker Nitschr: Free University Berlin

No 32007, Working Papers from Hong Kong Institute for Monetary Research

Abstract: Politicians travel extensively abroad, for various reasons. One purpose of external visits is to improve bilateral economic relations. In this paper, I examine the effect of state visits on international trade. I use a large data set covering the travel activities of the heads of state of France, Germany and the United States between 1948 and 2003. My results indicate that state and official visits are indeed positively correlated with exports. A typical visit is associated with higher bilateral exports by about 8 to 10 percent, holding other things constant.

Keywords: head; president, government, politics, gravity (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2007-02
New Economics Papers: this item is included in nep-pol
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