From Introduction:

This paper explores the influence of the EU-China’s economic diplomacy on its economic and business relations. There are many political science studies that explored this topic using a qualitative approach. However, there are not many economic literatures on this topic, and it is difficult to find research that applies quantitative methods. It is because of the effect of diplomacy is not easy to study in quantitative terms. To capture the effect of economic diplomacy of the two areas in a visible way, this study applies a quantitative method. It aims at contributing to this field of literature by offering quantifiable evidence. In particular, an event-study method will be employed. Event study helps us to observe whether there is a significant abnormal stock price return when a specific event takes place. Using the summit talks between the EU and China as a set of events which represent an economic diplomacy between the EU and China and aviation industry as a relevant object which receives the influence of it, this study observes the influence of the economic diplomacy in a quantitative manner.