Cultural Distance and International Trade in Services: A Disaggregate View

Philipp Harms and Daria Shuvalova

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: We estimate the effect of “cultural distance” on bilateral trade in services. Our measure of cultural distance is based on scores that reflect individuals’ attitudes towards hierarchies, initiative, competition, uncertainty etc. Controlling for other standard ingredients of gravity equations, we show that cultural distance has a negative effect on services trade. However, the strength and sign of this effect differs across various aspects of cultural distance and for various types of services.

JEL-codes: F14 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cul and nep-int
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Related works:
Journal Article: Cultural distance and international trade in services: A disaggregate view (2020)
Working Paper: Cultural Distance and International Trade in Services: A Disaggregate View (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168132

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