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Neckties in the tropics: a model of international trade and cultural diversity

Author

Listed:
  • James E. Rauch
  • Vitor Trindade

Abstract

Some cultural goods are consumed socially and are characterized by the same consumption network externalities as languages. Also, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and welfare in the long run. Increasing protection while keeping communication costs low may stimulate production of cultural goods that are `compatible' with the dominant style, adding little to the stock of usable ideas.

Suggested Citation

  • James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 809-843, August.
    • Handle: RePEc:cje:issued:v:42:y:2009:i:3:p:809-843
    DOI: 10.1111/j.1540-5982.2009.01528.x
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    Cited by:

    1. Giraldo, Iader & Jaramillo, Fernando, 2020. "International trade and “Catching up with the Joneses”: Are the consumption patterns convergent?," Research in Economics, Elsevier, vol. 74(3), pages 233-249.
    2. Jaeok Park, 2015. "Cultural Barriers in International Trade and the," Korean Economic Review, Korean Economic Association, vol. 31, pages 267-300.
    3. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Springer, vol. 67(1), pages 125-140, March.
    4. James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 809-843, August.
    5. Fernando Ferreira & Joel Waldfogel, 2013. "Pop Internationalism: Has Half a Century of World Music Trade Displaced Local Culture?," Economic Journal, Royal Economic Society, vol. 123, pages 634-664, June.
    6. Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2021. "Language, internet and platform competition," Journal of International Economics, Elsevier, vol. 131(C).
    7. Yanfen Wang, 2020. "A Literature Review of Empirical Research on Trade of Cultural Goods," Applied Finance and Accounting, Redfame publishing, vol. 6(1), pages 9-14, February.
    8. Disdier, Anne-Célia & Head, Keith & Mayer, Thierry, 2010. "Exposure to foreign media and changes in cultural traits: Evidence from naming patterns in France," Journal of International Economics, Elsevier, vol. 80(2), pages 226-238, March.
    9. Hanson, Gordon & Xiang, Chong, 2011. "Trade barriers and trade flows with product heterogeneity: An application to US motion picture exports," Journal of International Economics, Elsevier, vol. 83(1), pages 14-26, January.
    10. Maystre, Nicolas & Olivier, Jacques & Thoenig, Mathias & Verdier, Thierry, 2014. "Product-based cultural change: Is the village global?," Journal of International Economics, Elsevier, vol. 92(2), pages 212-230.
    11. Maria MASOOD, 2014. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," Working Papers P85, FERDI.
    12. Gordon H. Hanson & Chong Xiang, 2009. "International Trade in Motion Picture Services," NBER Chapters, in: International Trade in Services and Intangibles in the Era of Globalization, pages 203-222, National Bureau of Economic Research, Inc.
    13. Sanz, Esteve, 2015. "Copyright indicators and the costs of symbolic production: The cultural dimension of telecommunications policy," Telecommunications Policy, Elsevier, vol. 39(3), pages 208-217.
    14. Douglas L. Campbell, 2010. "History, Culture, and Trade: A Dynamic Gravity Approach," EERI Research Paper Series EERI_RP_2010_26, Economics and Econometrics Research Institute (EERI), Brussels.
    15. Nobuko Serizawa & Shigeru Wakita, 2016. "Variety-Controlling Public Policy Under Addiction and Saturation," The Japanese Economic Review, Japanese Economic Association, vol. 67(1), pages 125-140, March.
    16. Pablo Sigfrido Corte Cruz., 2020. "La apertura comercial de los productos culturales de México (2008-2017). (The Trade Openness of Cultural Products of Mexico (2008-2017))," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 115-142, November.
    17. C. Austin Davis & Jennifer P. Poole, 2024. "Foreign influence: The international transmission of gender equality," The World Economy, Wiley Blackwell, vol. 47(4), pages 1478-1494, April.
    18. Fabien Candau & Tchapo Gbandi & Geoffroy Guepie, 2022. "Beyond the income effect of international trade on ethnic wars in Africa," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(3), pages 517-534, July.
    19. Cai, Yang & Zhu, Jiong, 2024. "Cooperative culture and the birth of modern enterprises in China: Evidence from the signing of the Treaty of Shimonoseki," European Economic Review, Elsevier, vol. 163(C).
    20. Masood, Maria, 2019. "New evidence on income and the geographical distribution of imports: The case of audiovisuals," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 717-734.
    21. Eiji Yamamura & Inyong Shin, 2016. "Effect of consuming imported cultural goods on trading partners’ tolerance toward immigrants: the case of Japanese anime in Korea," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 681-703, November.
    22. Matthew T. Cole & Ronald B. Davies, 2014. "Royale with Cheese: Globalization, Tourism, and the Variety of Goods," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 386-400, May.
    23. Friberg, Richard & Paterson, Robert W. & Richardson, Andrew D., 2011. "Why is there a Home Bias? A Case Study of Wine," Journal of Wine Economics, Cambridge University Press, vol. 6(1), pages 37-66, January.
    24. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.
    25. Naoto Jinji & Ayumu Tanaka, 2020. "How does UNESCO’s Convention on Cultural Diversity affect trade in cultural goods?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(4), pages 625-660, December.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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