Distance, Transaction Costs, and Preferences in European Trade

Ari Kokko and Patrik Tingvall

The International Trade Journal, 2014, vol. 28, issue 2, 87-120

Abstract: Beckerman (1956) and Linder (1961) have suggested that international trade is not determined by supply-side factors alone-perceptions about foreign countries and country preferences matter. We explore the relation between exports, cultural distance, and country preferences in Europe. The results show that several distance and preference-related variables, based on Hofstede's cultural dimensions, income gaps, and voting patterns in the Eurovision Song Contest, are significantly related to bilateral trade. We conclude that cultural distance and preferences influence trade through several channels, both indirectly through transaction costs and more directly, as countries seem to prefer some trade partners before others.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/08853908.2013.830941 (text/html)
Access to full text is restricted to subscribers.

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:taf:uitjxx:v:28:y:2014:i:2:p:87-120

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/uitj20

DOI: 10.1080/08853908.2013.830941

Access Statistics for this article

The International Trade Journal is currently edited by George R. G. Clarke

More articles in The International Trade Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().