Public opinion and Chinese exports: evidence from Twitter sentiment analysis

Abstract

This paper employs web-crawling and sentiment analysis techniques to quantify public opinion and then investigates its effects on Chinese exports to trading partners during 2007–2019. The empirical results show that, after the control of possible reverse causality, negative China-related public opinion is associated with decreased exports. This relationship could be nurtured through three channels namely consumer preference, economic policy uncertainty and political conflicts. Further analysis reveals that the observed relationship is especially prevalent in developed markets and non-participatory countries of the Belt and Road Initiative as well as for industrial and capital-intensive products. In addition, it is found that political relation is positively associated with exports and plays a mitigating role in the negative relationship between public opinion and exports. Our findings have important policy implications. Policy makers are encouraged to think outside the box and exploit soft power of country image to promote exports.