Abstract
This study investigates the effect of political support in the United Nations on international trade by taking the votes on the representation of China from 1954 to 1971 as a case study. We document a strongly positive effect of political support toward the People's Republic of China on bilateral trade in the next year. This conclusion is robust when we consider different quantitative methods and sample selections. Two approaches are applied to address the potential endogeneity problem — estimates with the interest similarity with Albania as an instrumental variable and regressions with samples that changed voting attitude. Finally, we find that this positive effect is short-lived. Our empirical results indicate that political relations, reflected by political attitudes in the votes of the United Nations, exert explicit influence on bilateral economic exchange.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
