Data and Code for International Friends and Enemies
Principal Investigator(s): View help for Principal Investigator(s) Benny Kleinman, University of Chicago; Ernest Liu, Princeton University; Stephen J. Redding, Princeton University
Version: View help for Version V1
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| 1_DataPrep | 08/20/2024 01:52:PM | ||
| 2_GenerateExposure | 08/20/2024 01:52:PM | ||
| 3_PoliticalAnalysis | 08/20/2024 02:17:PM | ||
| 4_EORA_robustness | 08/20/2024 01:52:PM | ||
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Project Description
Summary:
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We examine whether as countries become more economically dependent on a trade partner, they realign politically towards that trade partner. We use network measures of economic exposure to foreign productivity growth derived from the class of trade models with a constant trade elasticity. We establish causality using two different sources of quasi-experimental variation: China's emergence into the global economy and the reduction in the cost of air travel over time. In both cases, we find that increased economic friendship causes increased political friendship, and that our theory-based network measures dominate simpler measures of trading relationships between countries.
Scope of Project
Subject Terms:
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international relations;
international trade;
productivity growth;
real income
JEL Classification:
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F14 Empirical Studies of Trade
F15 Economic Integration
F50 International Relations, National Security, and International Political Economy: General
F14 Empirical Studies of Trade
F15 Economic Integration
F50 International Relations, National Security, and International Political Economy: General
Geographic Coverage:
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World
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