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Economic Diplomacy and the Geography of International Trade
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Economic Diplomacy and the Geography of International Trade

9781848444638 Edward Elgar Publishing
Peter A.G. van Bergeijk, Professor of International Economics and Macroeconomics, international Institute of Social Studies, Erasmus University, The Hague, The Netherlands
Publication Date: 2009 ISBN: 978 1 84844 463 8 Extent: 240 pp
The book presents an overview of the general aspects of trade uncertainty, a central element in the analysis of economic diplomacy, illustrating that some instruments, such as sanctions (both positive and negative), increase trade uncertainty, whilst others – multilateral trade policy, for instance – aim to reduce this uncertainty. Commercial policy and bilateral economic diplomacy are explored, and economic sanctions analysed. An extensive review of the literature and empirical investigations of 161 sanctions and the commercial relationships of 37 countries provide topical and empirical perspectives on how international diplomacy may both be a cost and a benefit of the key drivers of productivity growth. Finally, policy conclusions are drawn, and a future research agenda presented.

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Globalization has increased both the heterogeneity and the stakes of bilateral economic relationships. Drawing on recent macroeconomic and microdata studies, Peter A.G. van Bergeijk estimates the impact of market failures and related border effects, exploring under which conditions these can be solved by state visits, export promotion and embassies.

The book presents an overview of the general aspects of trade uncertainty, a central element in the analysis of economic diplomacy, illustrating that some instruments, such as sanctions (both positive and negative), increase trade uncertainty, whilst others – multilateral trade policy, for instance – aim to reduce this uncertainty. Commercial policy and bilateral economic diplomacy are explored, and economic sanctions analysed. An extensive review of the literature and empirical investigations of 161 sanctions and the commercial relationships of 37 countries provide topical and empirical perspectives on how international diplomacy may both be a cost and a benefit of the key drivers of productivity growth. Finally, policy conclusions are drawn, and a future research agenda presented.

This timely, state-of-the-art treatment of economic diplomacy will be of enormous interest to students, researchers, and academics focussing on international political economy, international economics and public policy. Policy makers will also find much to engage them within this book.
Critical Acclaim
‘This book provides the political flesh to the bones of theoretical and empirical work in international trade. It brings together several recent developments in the literature, including the econometric developments in gravity modelling, the emphasis on firm heterogeneity, and the increased attention for political, institutional and cultural factors as relevant dimensions of distance explaining important parts of observed variations in trade intensities between nation states. The book is highly recommended to applied researchers and policy makers interested in the political economy of globalization.’
– Henri L.F. de Groot, Vrije Universiteit, Amsterdam, The Netherlands
Contents
Contents: Preface 1. Introduction: New Challenges to Economic Diplomacy Part I: Economic Diplomacy and Trade Uncertainty 2. Trade and Conflict (and Vice Versa) 3. Trade Uncertainty and Trade Disruption Part II: Economic Diplomacy and Commercial Policy 4. Commercial Policy and Economic Diplomacy: Why? 5. The Weight of Bilateral Economic Diplomacy and Commercial Policy Revisited Part III: Economic Statecraft: The Case of Sanctions 6. Failures and … Successes of Economic Sanctions 7. The Expected Utility of Positive and Negative Economic Sanctions Part IV: Policy Conclusions and Further Research 8. An Agenda for Economic and Commercial Diplomacy References Index
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