Thursday, November 04, 2010

Paying a Visit: The Dalai Lama Effect on International Trade



---------- Forwarded message ----------
From: Lokman Tsui <lokman.tsuiATgmailDOTcom>
Date: 2 November 2010 17:44
Subject: [chineseinternetresearch] the dalai lama effect on international trade? about two years
To: Chinese Internet Research

slightly different from the usual stuff on this list, nevertheless pretty
fascinating:


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Paying a Visit: The Dalai Lama Effect on International Trade

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1694602

http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1558578><http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1558578>
 Andreas
Fuchs
University of Goettingen (Gottingen) - Department of Economics

<http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1558580><http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1558580>
Nils-Hendrik
Klann
University of Goettingen (Gottingen) - Department of Economics


October 19, 2010

Center for European Governance and Economic Development Research Paper No.
113


Abstract:
The Chinese government frequently threatens that meetings between its
trading partners' officials and the Dalai Lama will be met with animosity
and ultimately harm trade ties with China. We run a gravity model of exports
to China from 159 partner countries between 1991 and 2008 to test to which
extent bilateral tensions affect trade with autocratic China. In order to
account for the potential endogeneity of meetings with the Dalai Lama, the
number of Tibet Support Groups and the travel pattern of the Tibetan leader
are used as instruments. Our empirical results support the idea that
countries officially receiving the Dalai Lama at the highest political level
are punished through a reduction of their exports to China. However, this
'Dalai Lama Effect' is only observed for the Hu Jintao era and not for
earlier periods. Furthermore, we find that this effect is mainly driven by
reduced exports of machinery and transport equipment and that it disappears
two years after a meeting took place.


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