EconPapers    
Economics at your fingertips  
 

Cultural Effects of Trade Liberalization

Steven Suranovic () and Robert Winthrop
Additional contact information
Robert Winthrop: Bureau of Land Management, US Dept. of Interior

International Trade from EconWPA

Abstract: We incorporate culture into a standard trade model in two distinct ways. In the ¡°cultural affinity from work¡± model, workers receive a non- pecuniary cultural benefit from work in a particular industry. In the ¡°cultural externality¡± model, consumers of a product receive utility from other consumer¡¯s consumption of a domestic good. We show that resistance to change due to cultural concerns can reduce the national benefits from trade liberalization. Complete movements to free trade will have a positive national welfare impact in the cultural affinity case whereas it may lower national welfare in the cultural externality case. We also show that a loss of cultural benefits is more likely to occur in the externality model.

Keywords: Cigarettes; smoking; addiction; Behavioral economics (search for similar items in EconPapers)
JEL-codes: F1 Z1 F11 F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2005-11-08
Note: Type of Document - pdf; pages: 31
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://econwpa.repec.org/eps/it/papers/0511/0511003.pdf (application/pdf)

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:wpa:wuwpit:0511003

Access Statistics for this paper

More papers in International Trade from EconWPA
Series data maintained by EconWPA ().

 
Page updated 2017-12-08
Handle: RePEc:wpa:wuwpit:0511003