Intercultural Economic Influences



Given the markedly differing attitudes as well as cultural values between different cultural groups of people, the adoption of a common standard is unlikely to prove effective. However “cultural dissimilarity” may also generate “economic complementarities” that will in turn exert positive influences on foreign trade. As a result the final output of the cultural influences should be nonlinear, subjected to various conditions concerned. In this chapter, cultural influences on international trade are found to be more significant for the post-Cold War era than in the Cold War era. Our empirical results also provide evidence supporting the presumption that high-income trade partners will be less sensitive to the measures of cultural dissimilarity than low-income trade partners between which cultural dissimilarity leads to barriers to international trade. The treatment of linguistic and religious factors as continuous variables in this chapter has improved past studies in which “language” was treated as one or more dummy variables and “religion” was ignored.


International Trade Foreign Trade Gravity Model Trade Partner Bilateral Trade 
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© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Regional Science Association of China at Peking UniversityBeijingChina

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