Cultural Barriers and Agricultural Trade in the Western Hemisphere
AbstractThis study analyzes the impacts of cultural distance on bilateral trade flows in the Western Hemisphere using a Fixed Effects Vector Decomposition (FEVD). Four cultural dimensions of Hofstede are used to capture cultural distance. The results found that the effects of each dimension vary considerably with three of four dimensions (UAI, PDI, and MFI) have a negative impact and one dimension (ICI) has a positive effect. The magnitude of ICI is large enough to offset the negative effects of the other three dimensions resulting in a net positive effect of cultural distance, suggesting that culturally-dissimilar countries trade more than less.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida with number 56352.
Date of creation: 2010
Date of revision:
agricultural trade; cultural distance; gravity model; International Relations/Trade;
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