Cultural origin and international trade

Haichao Fan, Xingcun Hu, Faqin Lin and Mengxun Liu

Journal of Economic Behavior & Organization, 2025, vol. 229, issue C

Abstract: Employing merged Chinese listed firm data, Chinese custom data, and the prefecture-level clan culture data, we find a clear pattern that chairpersons who originate from a prefecture-level city with a stronger clan culture lead firms to engage in less international trade. This finding is robust to a variety of checks including using the shortest distance from the chairperson's prefecture of origin to the nearest historical Neo-Confucian Academy and the number of southward-migrating clans during the Jianyan Reign (1127–1130) in the origin prefecture as instruments. The patterns in the data highlight the importance of cultural origin in shaping individuals’ attitudes towards international trade.

Keywords: International trade; Informal institutions; Experience effects; Preference heterogeneity; Clan culture (search for similar items in EconPapers)
JEL-codes: D22 D91 F14 Z13 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:229:y:2025:i:c:s0167268124004852

DOI: 10.1016/j.jebo.2024.106871

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