The Analysis of Cultural Convergence and Maritime Trade Between China and Saudi Arabia: Toda–Yamamoto Granger Causality

Nashwa Mostafa Ali Mohamed, Jawaher Binsuwadan (), Rania Hassan Mohammed Abdelkhalek and Kamilia Abd-Elhaleem Ahmed Frega
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Nashwa Mostafa Ali Mohamed: Department of Economics, College of Business Administration, King Saud University, P.O. Box 173, Riyadh 11942, Saudi Arabia
Jawaher Binsuwadan: Department of Economics, College of Business Administration, Princess Nourah Bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia
Rania Hassan Mohammed Abdelkhalek: Department of Quantitative Analysis, College of Business Administration, King Saud University, P.O. Box 173, Riyadh 11942, Saudi Arabia
Kamilia Abd-Elhaleem Ahmed Frega: Department of Economics, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11564, Saudi Arabia

Sustainability, 2025, vol. 17, issue 14, 1-24

Abstract: This study investigates the dynamic relationship between maritime trade and cultural convergence between China and Saudi Arabia, with a particular focus on the roles of creative goods and information and communication technology (ICT) exports as proxies for sociocultural integration. Utilizing quarterly data from 2012 to 2021, the analysis employs the Toda–Yamamoto Granger causality approach within a Vector Autoregression (VAR) framework. This methodology offers a robust means of testing causality without requiring data stationarity or cointegration, thereby reducing estimation bias and enhancing applicability to real-world economic data. The empirical model examines causal interactions among maritime trade, creative goods exports, ICT exports, and population, the latter serving as a control variable to account for demographic scale effects on trade dynamics. The results indicate statistically significant bidirectional causality between maritime trade and both creative goods and ICT exports, suggesting a reciprocal reinforcement between trade and cultural–technological exchange. In contrast, the relationship between maritime trade and population is found to be unidirectional. These findings underscore the strategic importance of cultural and technological flows in shaping maritime trade patterns. Furthermore, the study contextualizes its results within broader policy initiatives, notably China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030, both of which aim to promote mutual economic diversification and regional integration. The study contributes to the literature on international trade and cultural economics by demonstrating how cultural convergence can serve as a catalyst for strengthening bilateral trade relations. Policy implications include the promotion of cultural and technological collaboration, investment in maritime infrastructure, and the incorporation of cultural dimensions into trade policy formulation.

Keywords: cultural convergence; maritime trade; Toda–Yamamoto causality; information and communication technology; creative good exports (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:14:p:6501-:d:1702623

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