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Soft Power in Trade: Quantifying the Impact of Confucius Institutes on China's Exports

Year: 2025

Type: article

Abstract: ABSTRACT This paper investigates the role of Confucius Institutes (CIs) as a form of China's cultural diplomacy and their impact on international trade, particularly exports. Using a gravity model, we analyze data from 1990 to 2019 across countries, finding that the presence of CIs significantly boosts China's exports. Robustness checks confirm this effect across various specifications, including imports and sector‐level data. Mechanism analysis reveals that CIs enhance China's image, increasing trade by fostering positive perceptions abroad. The study further identifies pronounced trade effects in high‐income nations, and regions with shorter cultural distance from China. Our findings suggest that cultural output via Confucius Institutes not only advances China's soft power but also serves as a strategic tool to promote trade globally, with differentiated goods benefiting the most.

Source: International Studies of Economics

DOI: 10.1002/ise3.70008

Authors: Renjing Chen, Wei Jin, Tangrui Yang

Institutions: Wuhan University, Nankai University, Shanghai University of Finance and Economics

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,600

OpenAlex ID: W4410418242

FWCI: 3.885

Cites: 37

Cited by: 2

Related to: 10