IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v106y2025ics1057521925005757.html
   My bibliography  Save this article

When trade meets tradition: Unpacking cultural differences and their impact on China’s international trade

Author

Listed:
  • Yu, Bin
  • Zhong, Xingyu
  • Ghimire, Binam
  • Sapkota, Niranjan

Abstract

Amidst renewed trade tensions and heightened uncertainty in global financial markets, this paper examines the impact of cultural differences on China’s international trade. Departing from majority of prior studies treating cultural disparities as static, we employ dynamic models to capture cultural differences over 2001–2021 with its 44 key trading partners. We incorporate Hofstede’s six cultural dimensions and apply both linear and non-linear models. Our findings show a consistent negative effect of cultural distance on China’s trade. The non-linear analysis uncovers a S-shaped curve relationship, highlighting the subtle influence of cultural differences confirmed by robustness tests in export and import trades. We argue that the impact of trade tensions can be lessened by aligning with the evolving nature of consumer preferences and psychological factors.

Suggested Citation

  • Yu, Bin & Zhong, Xingyu & Ghimire, Binam & Sapkota, Niranjan, 2025. "When trade meets tradition: Unpacking cultural differences and their impact on China’s international trade," International Review of Financial Analysis, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:finana:v:106:y:2025:i:c:s1057521925005757
    DOI: 10.1016/j.irfa.2025.104488
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925005757
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104488?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:106:y:2025:i:c:s1057521925005757. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.