@techreport{NBERw13988,
 title = "Non-Economic Engagement and International Exchange: The Case of Environmental Treaties",
 author = "Andrew K. Rose and Mark M. Spiegel",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13988",
 year = "2008",
 month = "May",
 URL = "http://www.nber.org/papers/w13988",
 abstract = {We examine the role of non-economic partnerships in promoting international economic exchange. Since far-sighted countries are more willing to join costly international partnerships such as environmental treaties, environmental engagement tends to encourage international lending. Countries with such non-economic partnerships also find it easier to engage in economic exchanges since they face the possibility that debt default might also spill over to hinder their non-economic relationships. We present a theoretical model of these ideas, and then verify their empirical importance using a bilateral cross-section of data on international cross-holdings of assets and environmental treaties. Our results support the notion that international environmental cooperation facilitates economic exchange.},
}