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Virtual proximity and audiovisual services trade

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  • Hellmanzik, Christiane
  • Schmitz, Martin

Abstract

Audiovisual services such as music and movies in digital formats have gained substantial importance over the last decade. This paper analyses audiovisual services in a gravity model framework. In particular, we explore the role of virtual proximity – a new proxy for cultural proximity based on bilateral hyperlinks and bilateral website visits between countries – and find that ‘virtually-proximate’ countries trade significantly larger amounts of audiovisual services. Our results show that virtual proximity also has a larger impact on trade in audiovisual services than on total services trade. Moreover, in line with Hanson and Xiang (2011), our analysis indicates that in the audiovisual services sector, global fixed export costs dominate bilateral fixed export costs for most countries in our sample.

Suggested Citation

  • Hellmanzik, Christiane & Schmitz, Martin, 2015. "Virtual proximity and audiovisual services trade," European Economic Review, Elsevier, vol. 77(C), pages 82-101.
  • Handle: RePEc:eee:eecrev:v:77:y:2015:i:c:p:82-101
    DOI: 10.1016/j.euroecorev.2015.03.014
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    Cited by:

    1. repec:taf:apeclt:v:23:y:2016:i:10:p:695-700 is not listed on IDEAS
    2. JINJI Naoto & TANAKA Ayumu, 2015. "How Does UNESCO's Convention on Cultural Diversity Affect Trade in Cultural Goods?," Discussion papers 15126, Research Institute of Economy, Trade and Industry (RIETI).
    3. repec:bla:chinae:v:26:y:2018:i:6:p:50-71 is not listed on IDEAS
    4. Gianpiero Meloni & Dimitri Paolini & J. D. Tena, 2018. "American beauty: trade flows and export costs of US movies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(4), pages 701-716, November.
    5. repec:eee:jimfin:v:77:y:2017:i:c:p:164-179 is not listed on IDEAS
    6. Philipp Harms & Daria Shuvalova, 2016. "Cultural Distance and International Trade in Services: A Disaggregate View," Working Papers 1606, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    7. Hellmanzik, Christiane & Schmitz, Martin, 2017. "Taking gravity online: The role of virtual proximity in international finance," Journal of International Money and Finance, Elsevier, vol. 77(C), pages 164-179.

    More about this item

    Keywords

    International trade; Audiovisual services; Cultural proximity; Hyperlinks; Internet;

    JEL classification:

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

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