Donald Lien. + This is an ongoing project since 2012 + Four papers and a Chinese book have been published + A couple of projects are under way at this.

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Presentation transcript:

Donald Lien

+ This is an ongoing project since Four papers and a Chinese book have been published + A couple of projects are under way at this moment + An English book titled “Economic Dimension of Soft Power: The Case of Confucius Institute” is in progress

+ CI as a project + Cost: accounting cost and opportunity cost + Benefits: direct and indirect benefits

+ Improve understanding of Chinese language and culture + Comfort and familiarity + Expertise + Reduce transaction cost

+ Promote likeness toward China + Better understanding language and culture does not necessarily improve likeness + McDonald’s in Mideast + Soft power

+ Hard power (carrot and stick) vs. soft power + Is culture or language a soft power? + Is CI a soft power? + How does CI improve soft power? + How to measure CI soft power?

+ Bilateral economic relationships between two countries include + Trade + Investment + Tourism + Portfolio flows + Foreign aids

+ CI produces grease (familiarity and comfort) + CI as a medium (information platform) + Both may be realized in short term + Soft power impact is likely a long term outcome

+ CI affects bilateral economic relationships + Bilateral economic relationships affects CI establishment + Causation determination

+ The flows between two countries are positively related to their GDPs and negatively related to their distances + Geographical distance + Cultural distance + Language distance + Effects of CI

+ CI increases China’s export to CI host countries, particularly the third world countries + CI increases US exports to China + CI increases China’s FDI (foreign direct investment) to CI host countries, particularly the third world countries

+ CI increases tourism to China + Particularly business and worker tourisms + There is no effects on international portfolio flows

+ Goethe Institute displays significant trade effects, particularly when the host country is a developed country + British Council does not display any effect + Possible explanations: both have a long history; different structure; data difference