Do Better Political Relations with the USA Improve A Country's Economic Outlook?

Abstract

Relations of countries with the USA could be considered as helpful in their quest for enhanced economic performance. Does an improvement or deterioration in relations with the USA bring significant economic and financial benefits or costs, in areas such as, trade, capital flows, remittances, aid, military expenditures, and education? The results based on an event study are very preliminary. Nevertheless, this line of research could be fruitful and may enhance our appreciation of international political-economic relations and the ability to build more comprehensive theories of trade, capital flows and the like.

Keywords

• international political relations
• international trade
• international economic development