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.

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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