The impact of economic diplomacy on trade openness using gravity models: Case study of some African countries

Abstract

This study aimed to determine the effects of the diplomatic representation of each of Algeria on the African continent, as well as the diplomatic representation of African countries in Algeria, on the volume of trade exchanges between the latter during the period (2007-2021), This is based on the Panel Data in the standard estimation and modeling process. The study found that the diplomatic representation of the African countries in Algeria had a positive impact on the volume of trade openness of the national economy and with a high elasticity exceeding the value of 0.25%, meaning that the diplomacy of the African economy contributed positively to influencing the trade exchange of its countries with Algeria, While the opposite result was reached with regard to the Algerian economic diplomacy, which had a negative impact on the rates of trade openness in Algeria, meaning that the Algerian diplomacy did not perform the role required of it with regard to enhancing cooperation and trade integration between Algeria and the countries of the African continent.