“Neighbors in values”: A new dataset of cultural distances between countries based on individuals’ values, and its application to the study of global trade

Sergey Shulgin, Julia Zinkina and Andrey Korotayev

Research in International Business and Finance, 2017, vol. 42, issue C, 966-985

Abstract: The paper proposes a method for evaluating the cultural distance between countries by analyzing the differences in values of individuals residing in these countries. These differences are assessed with an innovative approach based on MELNN ensemble of five metrics (Mahalanobis distance, Euclidean distance, L-distance, as well as normalized versions of Euclidean and L-distances), compiled through factor analysis. For each individual we find “neighbors in values”, i.e. other individuals with possibly closest MELNN scores. We proceed to build a network interaction model on the basis of MELNN scores. Analyzing the closeness to each individual from country A of the whole multitude of individuals residing in country B eventually allows to define the cultural distance between these countries. We use the thus obtained cultural distances in a gravity model, where they prove to be a significant factor influencing bilateral trade.

Keywords: Values; WVS; Cultural distance; Neighbors in values; Metrics ensemble; MELNN; Mahalanobis distance; Euclidean distance; L-distance; Gravity model; Trade (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531916301945
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:42:y:2017:i:c:p:966-985

DOI: 10.1016/j.ribaf.2017.07.031

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().