TY  - JOUR
AU  - Rose,Andrew K.
AU  - Spiegel,Mark M.
TI  - Non-Economic Engagement and International Exchange: The Case of Environmental Treaties
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13988
PY  - 2008
Y2  - May 2008
UR  - http://www.nber.org/papers/w13988
L1  - http://www.nber.org/papers/w13988.pdf
N1  - Author contact info:
Andrew K. Rose
Haas School of Business Administration
University of California, Berkeley
Berkeley, CA 94720-1900
Tel: 510/642-6609
Fax: 510/642-4700
E-Mail: arose@haas.berkeley.edu

Mark M. Spiegel
Federal Reserve Bank of San Francisco
101 Market Street
San Francisco, CA 94105
E-Mail: mark.spiegel@sf.frb.org
AB  - 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.
ER  -