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Somatic distance, trust and trade

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  • Jacques Melitz
  • Farid Toubal

Abstract

Somatic distance, or differences in physical appearance, proves to be extremely important in the gravity model of bilateral trade in conformity with results in other areas of economics and outside in the social sciences. This is also true independently of survey evidence about bilateral trust. These findings are obtained in a sample of the 15 members of the European Economic Area in 1996. Robustness tests also show that somatic distance, as well as co‐ancestry, has a more reliable influence on bilateral trade than the other customary cultural variables. The article finally discusses the interpretation and breadth of application of these results.

Suggested Citation

  • Jacques Melitz & Farid Toubal, 2019. "Somatic distance, trust and trade," Review of International Economics, Wiley Blackwell, vol. 27(3), pages 786-802, August.
    • Handle: RePEc:bla:reviec:v:27:y:2019:i:3:p:786-802
    DOI: 10.1111/roie.12397
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    References listed on IDEAS

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    Cited by:

    1. Gideon Onyewuchi Ndubuisi, 2020. "Contractual frictions and the patterns of trade: The role of generalized trust," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 29(7), pages 775-796, October.
    2. Carlos Abreo & Ricardo Bustillo & Carlos Rodriguez, 2022. "An empirical analysis of Colombia's trade liberalization process and its effect on the equilibrium of its structural trade deficit," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 736-755, May.
    3. Benedikt Heid & Wenxi Lu, 2022. "Genetic distance, cultural differences, and the formation of regional trade agreements," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 1-23, February.
    4. Matteo Fiorini & Giorgia Giovannetti & Mauro Lanati & Filippo Santi, 2021. "Asymmetric cultural proximity and greenfield foreign direct investment," The World Economy, Wiley Blackwell, vol. 44(9), pages 2572-2603, September.
    5. Olivier BARGAIN & Jean-Marie CARDEBAT & Raphaël CHIAPPINI, 2020. "Trade Uncorked: Genetic Resistance and Quality Heterogeneity in Wine Exports," Bordeaux Economics Working Papers 2020-18, Bordeaux School of Economics (BSE).
    6. Ndubuisi, Gideon & Konte, Maty, 2019. "Credit constraints and trade performance: Does trust-based social capital matter?," MERIT Working Papers 2019-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. José De Sousa & Amélie Guillin & Julie Lochard & Arthur Silve, 2020. "Trust and Specialization: Evidence from U.S. States," Cahiers de recherche 2010, Centre de recherche sur les risques, les enjeux économiques, et les politiques publiques.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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