Does Diplomacy Promote International Trade? The Case of Ukraine
Abstract
The purpose of this paper is to analyze the impact of the commercial
diplomacy of Ukraine on its export. Within this field of research we mutually
compare various official representations abroad and their effects on export
flows. We consider embassies, consulates general and honorary consulates
as commercial diplomacy actors abroad. The main contribution of the
paper is that it is the first empirical study of Ukrainian commercial
diplomacy in terms of export promotion. We use an empirical trade model
to verify the impact of economic, cultural, geographical and diplomatic
factors on Ukrainian exports. The panel data incorporates 1386 export flows
to 198 destinations during the period from 2007 to 2013. In the end, we
conclude that embassies are more relevant instruments of export
stimulation than consulates general or honorary consulates.
Keywords
commerical diplomacy, export promotion, gravity model, Ukraine
Author Biography
Leonid Raneta
Leonid Raneta, born in 1982, he is an assistant professor at the Department of
International Economic Relations and Economic Diplomacy of the Faculty of
International Relations of the University of Economics in Bratislava. He
deals with international economic relations and the status of the post-Soviet region in the world economy in his research.
Mykhaylo Kunychka
Mykhaylo Kunychka, born in 1990, he is a PhD candidate at the Faculty of International Relations, University of Economics in Bratislava. In his research he deals with
economic diplomacy in the CIS countries, including Ukraine, which is the
object of his scrutiny in his dissertation.