6533b872fe1ef96bd12d39e8
RESEARCH PRODUCT
Cultural Distance and International Trade in Services: A Disaggregate View
Philipp HarmsDaria Shuvalovasubject
Economics and EconometricsInequalityF14media_common.quotation_subjectWelfare economics05 social sciences0211 other engineering and technologiesTrade in services02 engineering and technologyType of serviceCompetition (economics)Bilateral trade0502 economics and businessCultural distanceEconomicsddc:330021108 energyEconomic geographyGravity equation050207 economicsmedia_commondescription
Abstract In this paper, we estimate the effect of “cultural distance” on bilateral trade in services. The measure of cultural distance we use is based on scores that reflect country averages of individuals’ attitudes towards inequality, self-orientation, competition, uncertainty, traditions, and indulgence. Controlling for standard ingredients of gravity equations, we show that an aggregate measure of cultural distance has a significantly negative effect on total bilateral services trade. Once we take a more disaggregate view, we find that the strength of this effect differs across various types of services and various aspects of cultural distance.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2020-06-01 |