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Globalization and the dynamics of cultural identity

Jacques Olivier, Mathias Thoenig () and Thierry Verdier ()
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Jacques Olivier: HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales, CEPR - Center for Economic Policy Research - CEPR

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Abstract: This paper presents a simple model where micro-founded dynamics of cultural identity are endogenous and interact with an international trade equilibrium. This process generates a strong home bias under autarky. We then show that goods market integration causes a phenomenon of cultural divergence, whereby the distributions of cultures become more dissimilar across countries and one of the cultures that existed under autarky ultimately disappears. By way of contrast, we show that social integration causes cultural convergence and can counterbalance the effects of goods market integration.

Keywords: Cultural identity; Cultural transmission; International trade (search for similar items in EconPapers)
Date: 2008-12
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Published in Journal of International Economics, Elsevier, 2008, 76 (2), pp.356-370. 〈10.1016/j.jinteco.2008.06.009〉

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DOI: 10.1016/j.jinteco.2008.06.009

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