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Country
Image and International Trade |
Pao-li Chang and Tomoki
FUJII |
Working paper |
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Tomoki FUJII |
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This
paper studies the impact of country image on international trade flows. They
find that a one percentage point in the positive response ratio- the
proportion of people in the importing country who view the exporting country
positively- is associated with at least a one percent increase in the
aggregate trade flow. By disaggregating trade flows by the type of goods, we
also find that both homogenous and differentiated goods are positively
affected by better country image and that the impact of country image tends
to be larger when more substitutes are available in the international market. |