This thesis looks at the relation between the number of embassies a country has abroad and the inflow of Foreign Direct Investment within the respective country. The analysis is based on a Fixed...Show moreThis thesis looks at the relation between the number of embassies a country has abroad and the inflow of Foreign Direct Investment within the respective country. The analysis is based on a Fixed Effects model with panel data from 169 countries collected from 2000 until 2020. There was no public dataset available for the number of embassies. As such, the data for this variable was manually calculated for every single country for every single year. In the analysis it becomes clear that the number of embassies is relevant and significant to determine the FDI inflow. However, the population and the proportion of internet users in a country prove to be more significant and contribute more to the model than the number of embassies. This thesis confirms results from previous research, namely that a broader diplomatic network has a positive effect on trade relations. Its rationale can be found in the new statistical aspects, since it uses a Fixed Effects model, rather than a gravitational model. Moreover, this incorporates both longitudinal and cross-sectional data, whereas previous research solely deployed longitudinal data of one country or cross-sectional data of one year.Show less
This thesis aims to assess whether China and Japan’s strategies have both followed a similar economic diplomacy strategy when engaging with third countries and the corresponding projects, the Belt...Show moreThis thesis aims to assess whether China and Japan’s strategies have both followed a similar economic diplomacy strategy when engaging with third countries and the corresponding projects, the Belt and Road Initiative and the Free and Open Indo-Pacific strategy. While a specific motivation can be hard to pinpoint, the economic diplomacy tools they used are identifiable from agreements, public correspondence by officials or news articles that discuss reactions to the projects. Considering the case studies and the blueprints of the Free and Open Indo Pacific strategy and the Belt and Road Initiative, it is possible to conclude that Japan follows with the FOIP nearly the same or at least a very similar strategy to the BRI of China. The case studies do not always remain within the established movements of the BRI and FOIP in the used framework. The movements are along the axes of economic diplomacy primarily are between commercial and trade diplomacy. China in particular shows that it is willing to go further than Japan with using the tools of commercial diplomacy. Moreover, China is also willing to go further than Japan if they are not getting a formal participation in the BRI from another country, compared to the FOIP.Show less
China is the largest global producer and exporter in the rare earth industry. Nonetheless, the Chinese government decided to implement protectionist export policies since the country faced several...Show moreChina is the largest global producer and exporter in the rare earth industry. Nonetheless, the Chinese government decided to implement protectionist export policies since the country faced several issues in its domestic rare earth industry. China started the export restrictions around 2008 but the situation escalated in 2010 when China cut off 40% of its exports. This decision has led to a lot of disagreement between China and the rest of the world since many importing countries depend on China’s rare earth elements. Moreover, there was a lot of disagreement in the academic world as well since some scholars have analysed China’s export restrictions as a policy that supports development in its domestic rare earth industry whereas other scholars argued that China’s protectionist export policies did not support development. This thesis is a study on China’s export restrictions in its rare earth industry and aims to identify if China’s protectionist export policies have contributed to a solution for China’s domestic issues in its rare earth industry.Show less
This paper analyses the development and success of China’s use of economic diplomacy in cross-strait relations. It analyses two coercive approaches, and two non-coercive approaches to economic...Show moreThis paper analyses the development and success of China’s use of economic diplomacy in cross-strait relations. It analyses two coercive approaches, and two non-coercive approaches to economic diplomacy. The success of each respective example of economic diplomacy is analysed based on the degree to which the Chinese government succeeded in changing the political affiliation of Taiwanese target groups. The successfulness of each case of economic diplomacy is then further explained through the degree of control the Chinese had over the key-factors involved in these cases. I conclude that overall, non-coercive strategies of economic diplomacy are China’s best option for increasing its influence over Taiwan. While coercive strategies can also benefit Beijing, they are unable to significantly alter the political affiliation of the Taiwanese electorate in Beijing’s favour, as strong coercion tends to generate major public opposition.Show less
