Virtual proximity and audiovisual services trade

Christiane Hellmanzik () and Martin Schmitz

European Economic Review, 2015, vol. 77, issue C, 82-101

Abstract: Audiovisual services such as music and movies in digital formats have gained substantial importance over the last decade. This paper analyses audiovisual services in a gravity model framework. In particular, we explore the role of virtual proximity – a new proxy for cultural proximity based on bilateral hyperlinks and bilateral website visits between countries – and find that ‘virtually-proximate’ countries trade significantly larger amounts of audiovisual services. Our results show that virtual proximity also has a larger impact on trade in audiovisual services than on total services trade. Moreover, in line with Hanson and Xiang (2011), our analysis indicates that in the audiovisual services sector, global fixed export costs dominate bilateral fixed export costs for most countries in our sample.

Keywords: International trade; Audiovisual services; Cultural proximity; Hyperlinks; Internet (search for similar items in EconPapers)
JEL-codes: F12 F15 Z10 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:77:y:2015:i:c:p:82-101

DOI: 10.1016/j.euroecorev.2015.03.014

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