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Cultural distance, institutional distance and international trade

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  • Sjoerd Beugelsdijk

    ()

  • Henri De Groot

    ()

  • Gert-Jan Linders

    ()

  • Arjen Slangen

    ()

Abstract

There is large variation in trade patterns across the world. Despite the popular discussion on the ‘death of distance’, distance is still the most important variable explaining this variation. In explaining trade patterns across the worls, it is important to acknowledge the multiple dimensions of distance. In this paper, we empirically investigate the relevance of several of these dimensions. Apart from physical distance, we also consider the effects of cultural distance and institutional distance. Our results reveal the importance of all three dimensions. JEL classification: F14 Keywords: bilateral trade, gravity models, cultural distance, institutional distance

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p265.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p265

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Cited by:
  1. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," DULBEA Working Papers 09-03.RS, ULB -- Universite Libre de Bruxelles.

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