| Abstract: |
In this paper I quantify a gain that a country receives when its global
influence is considered to be admirable by others. I use a standard gravity
model of bilateral exports, a panel of data from 2006 through 2013, and an
annual survey conducted for the BBC by GlobeScan which asks people in up to 46
countries about whether each of up to 17 countries were perceived to have “a
mainly positive or negative influence in the world.” Holding other things
constant, a country’s exports are higher if it is perceived by the importer to
be exerting more positive global influence. This effect is statistically and
economically significant; a one percent net increase in perceived positive
influence raises exports by around .8 percent. Succinctly, countries receive a
commercial return on their soft power. |