The impact of diplomatic visits on China’s international trade and FDI

Liu, Bing (2017). The impact of diplomatic visits on China’s international trade and FDI. University of Birmingham. Ph.D.

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If the media and politicians are to be believed diplomatic visits from government officials and their entourage to existing and potential trade partners can have a dramatic impact on future international trade and investment, China’s emergences as a global trading power has put visits from and to China in the spot light. In this thesis, we examine the impact of Chinese leaders’ visits as well as the impact of foreign dignitaries who have visited China on China’s international trade and FDI. Employing log-linear and Poisson Pseudo Maximum Likelihood (PPML) approaches, the gravity model finds little evidence that diplomatic visits are effective to promote international trade between China and the rest of world. Diplomatic visits appear to exert different impact on trade with two relatively homogeneous groups of countries, African countries and OECD countries. In addition, it is found that diplomatic visits are significantly associated with a higher amount of OECD outward FDI to China.

Type of Work: Thesis (Doctorates > Ph.D.)
Award Type: Doctorates > Ph.D.
College/Faculty: Colleges (2008 onwards) > College of Social Sciences
School or Department: Birmingham Business School, Department of Economics
Funders: None/not applicable
Subjects: D History General and Old World > DS Asia
H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
J Political Science > JZ International relations


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