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Cultural origin and international trade

Author

Listed:
  • Fan, Haichao
  • Hu, Xingcun
  • Lin, Faqin
  • Liu, Mengxun

Abstract

Employing merged Chinese listed firm data, Chinese custom data, and the prefecture-level clan culture data, we find a clear pattern that chairpersons who originate from a prefecture-level city with a stronger clan culture lead firms to engage in less international trade. This finding is robust to a variety of checks including using the shortest distance from the chairperson's prefecture of origin to the nearest historical Neo-Confucian Academy and the number of southward-migrating clans during the Jianyan Reign (1127–1130) in the origin prefecture as instruments. The patterns in the data highlight the importance of cultural origin in shaping individuals’ attitudes towards international trade.

Suggested Citation

  • Fan, Haichao & Hu, Xingcun & Lin, Faqin & Liu, Mengxun, 2025. "Cultural origin and international trade," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:jeborg:v:229:y:2025:i:c:s0167268124004852
    DOI: 10.1016/j.jebo.2024.106871
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    More about this item

    Keywords

    International trade; Informal institutions; Experience effects; Preference heterogeneity; Clan culture;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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