Noneconomic Engagement and International Exchange: The Case of Environmental Treaties
研究非经济伙伴关系如何促进国际经济交流，发现加入环境条约等长期合作的国家更容易获得国际贷款，因为债务违约可能波及非经济关系。
We examine the role of noneconomic 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 noneconomic 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 noneconomic 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.