SMU SOE Seminar (August 1, 2023): Love Panda, Love China: The Panda Effect on International Trade

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TOPIC:

LOVE PANDA, LOVE CHINA: THE PANDA EFFECT ON INTERNATIONAL TRADE

ABSTRACT How does the giant panda help China shape its diplomacy image and improve trade relations with other countries? This paper empirically examines the effects of China’s giant panda diplomacy on its international trade flows over the past half century. Based on the gravity model of trade, we find that countries receiving a panda from China experience a positive and significant increase in their imports from China. This positive “panda effect” on trade becomes effective only in the subsequent two years after a panda is given, suggesting the long-term trade adjustment of panda diplomacy. We employ a highly disaggregated transaction-level customs database and find that this positive “panda effect” is more significant for exports from Sichuan Province (pandas' native habitat) than from other areas of China. Heterogeneous analysis exploring firms' ownership information shows that this export-promoting “panda effect” is mainly driven by state-owned enterprises (SOEs) in the first two years following the transfer of the panda, whereas after three years, the export-promoting effects are dominated by non-SOEs. Our paper enriches the understanding of the political and diplomatic influences on international trade. Click here to view the CV.
		PRESENTER Wei Jin Nankai University
		RESEARCH FIELDS International Political Economy International Trade International Business
		DATE: 1 August 2023 (Tuesday)
		TIME: 10am - 11.30am
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903

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