IDEAS home Printed from https://ideas.repec.org/a/wsi/gejxxx/v16y2016i04ngej-2015-0062.html
   My bibliography  Save this article

The Effects of Cultural Differences on Bilateral Trade Patterns

Author

Listed:
  • Raymond J. MacDermott

    (Department of Economics and Business, VirginiaMilitary Institute, 331 Scott Shipp Hall, Lexington, VA 24450, USA)

  • Dekuwmini Mornah

    (Department of Economics and Business, VirginiaMilitary Institute, 331 Scott Shipp Hall, Lexington, VA 24450, USA)

Abstract

We argue that using the aggregate of the Euclidian distance of different dimensions of culture to measure the impact of culture on bilateral trade patterns as is conventional in the literature is flawed. Using recent innovations in gravity model estimations and adopting the GLOBE team dimensions of culture, we confirm that the aggregate measure of culture imposes arbitrary functional forms, wrongly assumes symmetry in the effect of culture on bilateral trade, generalizes the effect of culture on trade and lacks policy relevancy. Our novel approach also allows us to determine which aspects of culture promote trade and which aspects do not.

Suggested Citation

  • Raymond J. MacDermott & Dekuwmini Mornah, 2016. "The Effects of Cultural Differences on Bilateral Trade Patterns," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(4), pages 637-668, December.
  • Handle: RePEc:wsi:gejxxx:v:16:y:2016:i:04:n:gej-2015-0062
    DOI: 10.1515/GEJ-2015-0062
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/abs/10.1515/GEJ-2015-0062
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1515/GEJ-2015-0062?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jason Query & Jon C. Thompson, 2024. "Cultural Distance and International Trade," Open Economies Review, Springer, vol. 35(2), pages 283-300, April.

    More about this item

    Keywords

    bilateral; trade; culture; gravity;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:gejxxx:v:16:y:2016:i:04:n:gej-2015-0062. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/gej .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.