Abstract
AbstractThe purpose of this study is to test for the effects of trade promotion via the foreign service. The theory of trade with heterogeneous firms predicts that unilateral trade promotion allows medium‐sized firms to export. We investigate the effects of trade promotion using firm‐level data and information on the opening and closing of embassies abroad from the very similar neighboring countries Sweden and Norway. We use a difference‐in‐difference specification where firms from Norway are used as a control group for Swedish firms. Our results show that large firms as well as medium‐sized firms respond to the opening of embassies.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
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 call
