Does Diplomacy Promote International Trade? The Case of Ukraine

  • Leonid Raneta
  • Mykhaylo Kunychka
Keywords: commercial diplomacy, export promotion, gravity model, Ukraine

Abstract

The purpose of this paper is to analyze the impact of the commercial diplomacy of Ukraine on its export. Within this field of research we mutually compare various official representations abroad and their effects on export flows. We consider embassies, consulates general and honorary consulates as commercial diplomacy actors abroad. The main contribution of the paper is that it is the first empirical study of Ukrainian commercial diplomacy in terms of export promotion. We use an empirical trade model to verify the impact of economic, cultural, geographical and diplomatic factors on Ukrainian exports. The panel data incorporates 1386 export flows to 198 destinations during the period from 2007 to 2013. In the end, we conclude that embassies are more relevant instruments of export stimulation than consulates general or honorary consulates.

Author Biographies

Leonid Raneta

Born in 1982, he is an assistant professor at the Department of International Economic Relations and Economic Diplomacy of the Faculty of International Relations of the University of Economics in Bratislava. He deals with international economic relations and the status of the post-Soviet region in the world economy in his research.

Mykhaylo Kunychka

Born in 1990, he is a PhD candidate at the Faculty of International Relations, University of Economics in Bratislava. In his research he deals with economic diplomacy in the CIS countries, including Ukraine, which is the object of his scrutiny in his dissertation.

Section
Research Articles