2019

Sizing Up the Impact of Embassies on Exports

Reprint No. 2019:1

Author(s): Shon Ferguson and Rikard ForslidYear: 2019 Title: Scandinavian Journal of Economics Volume (No.): 121 (1) Pages: 278–297
Online article (restrictions may apply)
Preliminary version


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.


Reference:
Ferguson, Shon and Rikard Forslid (2019), "Sizing Up the Impact of Embassies on Exports". Scandinavian Journal of Economics 121(1), 278–297.

Shon Ferguson

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Ph: +46 8 665 4523
shon.ferguson@ifn.se

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Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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