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Melting pot or salad bowl: Cultural effects on industrial similarity during trade liberalization

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  • Jiao, Yang
  • Shen, Leilei
  • Liu, Yuyun

Abstract

This paper examines the impact of culture on the industrial similarity between two adjacent counties during the process of trade liberalization between 1998 and 2007. The findings show that trade accelerates the industrial similarities between counties. The evolution of similarity is unequal between regions and over time, as industries in neighboring counties that belong to different dialect regions become more similar than industries within the same dialect region. The rise in industrial similarity is being fueled by the emergence of high-skill-intensive businesses as a result of trade-related technology spillovers. Adjacent counties of different dialects have greater skill endowments, which facilitate information transfer.

Suggested Citation

  • Jiao, Yang & Shen, Leilei & Liu, Yuyun, 2023. "Melting pot or salad bowl: Cultural effects on industrial similarity during trade liberalization," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 235-258.
    • Handle: RePEc:eee:jcecon:v:51:y:2023:i:1:p:235-258
    DOI: 10.1016/j.jce.2022.09.002
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    More about this item

    Keywords

    Cultural difference; Industrial similarity; Trade liberalization; Knowledge spillover;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • Z1 - Other Special Topics - - Cultural Economics

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