Tuesday 2 November 2010

What happens to trade when you visit the Dalai Lama?

An econometric model from Fuchs and Klann show 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, this effect is mainly driven by reduced exports of machinery and transport equipment and that it disappears two years after a meeting took place

No comments: