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Cultural Distance and International Trade in Services: A Disaggregate View

Philipp Harms and Daria Shuvalova ()
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Daria Shuvalova: Johannes Gutenberg University Mainz

No 1606, Working Papers from Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz

Abstract: In this paper, we estimate the effect of “cultural distance” on bilateral trade in services. Our measure of cultural distance is based on the scores developed by the social psychologist Geert Hofstede, which reflect country averages of individuals’ attitude towards power, uncertainty, individualism etc. Controlling for other standard ingredients of gravity equations, we show that an aggregate measure of cultural distance has a significantly negative effect on total bilateral services trade. However, once we take a more disaggregate view, we find that the strength and sign of this effect differs across various aspects of culture and across various types of services.

Keywords: Trade in services; cultural distance; Hofstede scores; gravity equation (search for similar items in EconPapers)
Pages: 35 pages
Date: 2016-01
New Economics Papers: this item is included in nep-cul and nep-dem
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https://download.uni-mainz.de/RePEc/pdf/Discussion_Paper_1606.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Cultural distance and international trade in services: A disaggregate view (2020) Downloads
Working Paper: Cultural Distance and International Trade in Services: A Disaggregate View (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:jgu:wpaper:1606

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