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Product-Based Cultural Change: Is the Village Global?

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  • Maystre, Nicolas
  • Olivier, Jacques
  • Thoenig, Mathias
  • Verdier, Thierry

Abstract

This paper makes three contributions to the growing literature on culture and economics. Using answers to the World Values Survey for a sample of 79 countries over the 1989-2004 period, we first provide evidence of cultural homogenization between countries. Second, we provide a model of product-based cultural change. Our main theoretical predictions are: (i) bilateral trade openness reduces bilateral cultural distance; (ii) the more differentiated the products, the more trade reduces cultural distance; (iii) trade openness has a lock-in effect on culture. Third, we test the model using an instrumental variable approach and including various time and country-pair fixed effects. We find that a one standard deviation increase in bilateral trade openness translates into a 43% standard deviation decrease in bilateral cultural distance.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7438.

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Date of creation: Aug 2009
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Handle: RePEc:cpr:ceprdp:7438

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Keywords: culture; homogenization; persistence; trade;

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References

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Citations

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Cited by:
  1. Keith Head & Thierry Mayer, 2013. "What separates us? Sources of resistance to globalization," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1196-1231, November.
  2. Alessandra Cassar & Giovanna d'Adda & Pauline Grosjean, 2013. "Institutional Quality, Culture, and Norms of Cooperation: Evidence from a Behavioral Field Experiment," Discussion Papers 2013-10, School of Economics, The University of New South Wales.
  3. Anne-Célia Disdier & Lionel Fontagné & Silvio H. T. Tai & Thierry Mayer, 2010. "Bilateral trade of cultural goods," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
  4. Nathan Nunn & Daniel Trefler, 2013. "Domestic Institutions as a Source of Comparative Advantage," NBER Working Papers 18851, National Bureau of Economic Research, Inc.
  5. Maria Masood, 2012. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," CEPN Working Papers hal-00778502, HAL.
  6. Corneo, Giacomo & Neher, Frank, 2012. "Income Inequality and Self-Reported Values," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 382, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  7. Giacomo Corneo, 2011. "GINI DP 17: Income Inequality, Value Systems and Macroeconomic Performance," GINI Discussion Papers 17, AIAS, Amsterdam Institute for Advanced Labour Studies.
  8. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2009. "Product-Based Cultural Change: Is the Village Global?," CEPR Discussion Papers 7438, C.E.P.R. Discussion Papers.
  9. Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," NRN working papers 2009-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  10. Maria MASOOD, 2014. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," Working Papers P85, FERDI.
  11. repec:aia:ginidp:dp17 is not listed on IDEAS

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