IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v42y2009i3p809-843.html
   My bibliography  Save this article

Neckties in the tropics: a model of international trade and cultural diversity

Author

Listed:
  • James E. Rauch
  • Vitor Trindade

Abstract

Some cultural goods are consumed socially and are characterized by the same consumption network externalities as languages. Also, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and welfare in the long run. Increasing protection while keeping communication costs low may stimulate production of cultural goods that are `compatible' with the dominant style, adding little to the stock of usable ideas.

Suggested Citation

  • James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 809-843, August.
    • Handle: RePEc:cje:issued:v:42:y:2009:i:3:p:809-843
    DOI: 10.1111/j.1540-5982.2009.01528.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-5982.2009.01528.x
    Download Restriction: access restricted to subscribers
    File URL: https://libkey.io/10.1111/j.1540-5982.2009.01528.x?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 809-843, August.
    2. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    3. Bala, Venkatesh & Van Long, Ngo, 2005. "International trade and cultural diversity with preference selection," European Journal of Political Economy, Elsevier, vol. 21(1), pages 143-162, March.
    4. B. Curtis Eaton & Krishna Pendakur & Clyde Reed, 2000. "Socializing, Shared Experience and Popular Culture," Discussion Papers dp00-13, Department of Economics, Simon Fraser University, revised May 2000.
    5. Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 7, pages 187-222, World Scientific Publishing Co. Pte. Ltd..
    6. Jordi Sintas & Ercilia Álvarez, 2002. "The Consumption of Cultural Products: An Analysis of the Spanish Social Space," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 115-138, May.
    7. Andreu Mas-Colell, 1999. "Should Cultural Goods Be Treated Differently?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(1), pages 87-93, March.
    8. Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
    9. Nina Pavcnik, 2002. "Trade Disputes in the Commercial Aircraft Industry," The World Economy, Wiley Blackwell, vol. 25(5), pages 733-751, May.
    10. Eckhard Janeba, 2004. "International Trade and Cultural Identity," NBER Working Papers 10426, National Bureau of Economic Research, Inc.
    11. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.
    12. Francois, Patrick & van Ypersele, Tanguy, 2002. "On the protection of cultural goods," Journal of International Economics, Elsevier, vol. 56(2), pages 359-369, March.
    13. N. Jayaram & Surendra K. Gupta & A.P. Barnabas & Sachchidananda & P.S. Pachauri & M.L. Khattar & B.N. Sampath & H. R. Khanna, 1985. "India," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 177-179, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Giraldo, Iader & Jaramillo, Fernando, 2020. "International trade and “Catching up with the Joneses”: Are the consumption patterns convergent?," Research in Economics, Elsevier, vol. 74(3), pages 233-249.
    2. Jaeok Park, 2015. "Cultural Barriers in International Trade and the," Korean Economic Review, Korean Economic Association, vol. 31, pages 267-300.
    3. James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 809-843, August.
    4. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Springer, vol. 67(1), pages 125-140, March.
    5. Disdier, Anne-Célia & Head, Keith & Mayer, Thierry, 2010. "Exposure to foreign media and changes in cultural traits: Evidence from naming patterns in France," Journal of International Economics, Elsevier, vol. 80(2), pages 226-238, March.
    6. Fernando Ferreira & Joel Waldfogel, 2013. "Pop Internationalism: Has Half a Century of World Music Trade Displaced Local Culture?," Economic Journal, Royal Economic Society, vol. 123, pages 634-664, June.
    7. Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2021. "Language, internet and platform competition," Journal of International Economics, Elsevier, vol. 131(C).
    8. Yanfen Wang, 2020. "A Literature Review of Empirical Research on Trade of Cultural Goods," Applied Finance and Accounting, Redfame publishing, vol. 6(1), pages 9-14, February.
    9. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2014. "Product-based cultural change: Is the village global?," Journal of International Economics, Elsevier, vol. 92(2), pages 212-230.
    10. Hanson, Gordon & Xiang, Chong, 2011. "Trade barriers and trade flows with product heterogeneity: An application to US motion picture exports," Journal of International Economics, Elsevier, vol. 83(1), pages 14-26, January.
    11. Maria MASOOD, 2014. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," Working Papers P85, FERDI.
    12. Gordon H. Hanson & Chong Xiang, 2009. "International Trade in Motion Picture Services," NBER Chapters, in: International Trade in Services and Intangibles in the Era of Globalization, pages 203-222, National Bureau of Economic Research, Inc.
    13. Sanz, Esteve, 2015. "Copyright indicators and the costs of symbolic production: The cultural dimension of telecommunications policy," Telecommunications Policy, Elsevier, vol. 39(3), pages 208-217.
    14. Douglas L. Campbell, 2010. "History, Culture, and Trade: A Dynamic Gravity Approach," EERI Research Paper Series EERI_RP_2010_26, Economics and Econometrics Research Institute (EERI), Brussels.
    15. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Japanese Economic Association, vol. 67(1), pages 125-140, March.
    16. Pablo Sigfrido Corte Cruz., 2020. "La apertura comercial de los productos culturales de México (2008-2017). (The Trade Openness of Cultural Products of Mexico (2008-2017))," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 115-142, November.
    17. Naoto Jinji & Ayumu Tanaka, 2020. "How does UNESCO’s Convention on Cultural Diversity affect trade in cultural goods?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(4), pages 625-660, December.
    18. Fabien Candau & Tchapo Gbandi & Geoffroy Guepie, 2022. "Beyond the income effect of international trade on ethnic wars in Africa," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(3), pages 517-534, July.
    19. Cai, Yang & Zhu, Jiong, 2024. "Cooperative culture and the birth of modern enterprises in China: Evidence from the signing of the Treaty of Shimonoseki," European Economic Review, Elsevier, vol. 163(C).
    20. Masood, Maria, 2019. "New evidence on income and the geographical distribution of imports: The case of audiovisuals," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 717-734.
    21. Eiji Yamamura & Inyong Shin, 2016. "Effect of consuming imported cultural goods on trading partners’ tolerance toward immigrants: the case of Japanese anime in Korea," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 681-703, November.
    22. Matthew T. Cole & Ronald B. Davies, 2014. "Royale with Cheese: Globalization, Tourism, and the Variety of Goods," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 386-400, May.
    23. Friberg, Richard & Paterson, Robert W. & Richardson, Andrew D., 2011. "Why is there a Home Bias? A Case Study of Wine," Journal of Wine Economics, Cambridge University Press, vol. 6(1), pages 37-66, January.
    24. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Disdier, Anne-Célia & Head, Keith & Mayer, Thierry, 2010. "Exposure to foreign media and changes in cultural traits: Evidence from naming patterns in France," Journal of International Economics, Elsevier, vol. 80(2), pages 226-238, March.
    2. Naoto Jinji & Ayumu Tanaka, 2020. "How does UNESCO’s Convention on Cultural Diversity affect trade in cultural goods?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(4), pages 625-660, December.
    3. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.
    4. Eiji Yamamura & Inyong Shin, 2016. "Effect of consuming imported cultural goods on trading partners’ tolerance toward immigrants: the case of Japanese anime in Korea," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 681-703, November.
    5. Jaeok Park, 2015. "Cultural Barriers in International Trade and the," Korean Economic Review, Korean Economic Association, vol. 31, pages 267-300.
    6. Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2021. "Language, internet and platform competition," Journal of International Economics, Elsevier, vol. 131(C).
    7. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Springer, vol. 67(1), pages 125-140, March.
    8. Fernando Ferreira & Joel Waldfogel, 2013. "Pop Internationalism: Has Half a Century of World Music Trade Displaced Local Culture?," Economic Journal, Royal Economic Society, vol. 123, pages 634-664, June.
    9. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Japanese Economic Association, vol. 67(1), pages 125-140, March.
    10. Giraldo, Iader & Jaramillo, Fernando, 2020. "International trade and “Catching up with the Joneses”: Are the consumption patterns convergent?," Research in Economics, Elsevier, vol. 74(3), pages 233-249.
    11. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2014. "Product-based cultural change: Is the village global?," Journal of International Economics, Elsevier, vol. 92(2), pages 212-230.
    12. Martin Richardson & Simon Wilkie, 2013. "Faddists, enthusiasts and Canadian divas:a model of the recorded music market," ANU Working Papers in Economics and Econometrics 2013-600, Australian National University, College of Business and Economics, School of Economics.
    13. Sanz, Esteve, 2015. "Copyright indicators and the costs of symbolic production: The cultural dimension of telecommunications policy," Telecommunications Policy, Elsevier, vol. 39(3), pages 208-217.
    14. Günther G. Schulze, 2011. "International Trade," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 33, Edward Elgar Publishing.
    15. Masood, Maria, 2019. "New evidence on income and the geographical distribution of imports: The case of audiovisuals," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 717-734.
    16. Steven M. Suranovic & Robert Winthrop, 2005. "Cultural Effects of Trade Liberalization," International Trade 0511003, University Library of Munich, Germany.
    17. Martin Richardson & Simon Wilkie, 2017. "Faddists, Enthusiasts and Canadian Divas: Broadcasting Quotas and the Supply Response," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 4, pages 73-104, World Scientific Publishing Co. Pte. Ltd..
    18. Matthew T. Cole & Ronald B. Davies, 2014. "Royale with Cheese: Globalization, Tourism, and the Variety of Goods," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 386-400, May.
    19. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    20. Dr Max Nathan, 2013. "The wider economic impacts of high-skilled migrants: a survey of the literature," National Institute of Economic and Social Research (NIESR) Discussion Papers 413, National Institute of Economic and Social Research.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • Z10 - Other Special Topics - - Cultural Economics - - - General

    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:cje:issued:v:42:y:2009:i:3:p:809-843. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    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.