Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162952
Authors: 
Fuchs, Andreas
Year of Publication: 
2016
Series/Report no.: 
Discussion Paper Series, University of Heidelberg, Department of Economics 609
Abstract: 
This article reviews the literature on the linkages between political tensions, economic diplomacy and international trade in the light of China’s rise in the global economy. The existing scholarly work suggests that economic diplomacy should be more pivotal in economic exchange with China than with Western market economies. In an econometric test, I analyze how diplomatic tensions, measured through foreign dignitaries’ meetings with the Dalai Lama, affect the likelihood of an official visit from a Chinese leader. The results show that the likelihood of the Chinese leadership traveling to a country is 13.6 percent lower if the country’s government receives the Dalai Lama in a given year but increases in the following year, supposedly to restore ties. This finding underlines that economic diplomacy is an important channel linking political climate and economic exchange between nations.
Subjects: 
economic diplomacy
international trade
embassies
political climate
state visits
leadership travel
emerging economies
China
Dalai Lama
Tibet
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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