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Hofstede national culture and international trade

Author

Listed:
  • Helga Kristjánsdóttir
  • Þórhallur Örn Guðlaugsson
  • Svala Guðmundsdóttir
  • Gylfi Dalmann Aðalsteinsson

Abstract

The objective is to analyse if international trade is affected by different national cultures. International trade of 21 World Bank listed countries is estimated as function of the Hofstede cultural dimensions, gross domestic product and population. First, we estimate the combined Hofstede culture dimensions and find significant positive effects on countries’ international trade. Secondly, we decompose the Hofstede culture dimensions and estimate the effects of each separate dimension on international trade, finding only the MAS dimension to significantly affect international trade. We estimate additional equation versions to account for occasional trade restrictions with no international trade, as well as estimating how international trade varies between years. These additional estimations further support our original findings, and therefore act as robustness check.

Suggested Citation

  • Helga Kristjánsdóttir & Þórhallur Örn Guðlaugsson & Svala Guðmundsdóttir & Gylfi Dalmann Aðalsteinsson, 2017. "Hofstede national culture and international trade," Applied Economics, Taylor & Francis Journals, vol. 49(57), pages 5792-5801, December.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5792-5801
    DOI: 10.1080/00036846.2017.1343446
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    References listed on IDEAS

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    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
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    3. Yuki Takara & Shingo Takagi, 2023. "An empirical approach to measure unobserved cultural relations using music trade data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 47(2), pages 205-245, June.
    4. Messner, Wolfgang, 2024. "Distance is the spice, but not the whole enchilada: Country-pair psychic distance stimuli and country fixed effects in a deep learning implementation of the trade flow model," International Business Review, Elsevier, vol. 33(1).
    5. He, Rong & Li, Heqing & Lian, Zeng & Zheng, Jie, 2020. "The effect of culture on consumption: A behavioral approach," Journal of Asian Economics, Elsevier, vol. 67(C).
    6. Abd Rashid, Suliza & Masron, Tajul Ariffin & Malim, Nurhafiza Abdul Kader, 2023. "The effect of corruption on entrepreneurship in the presence of weak regulatory quality: Evidence from developing countries," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    7. Ziad Ghaith & Donald Wagner, 2025. "The impact of cultural factors on international trade: an empirical analysis," International Economics and Economic Policy, Springer, vol. 22(3), pages 1-21, July.
    8. Aleksandr Kljuènikov & Mehmet Civelek & Cyril Klimeš & Radim Farana, 2022. "Export risk perceptions of SMEs in selected Visegrad countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 173-190, March.
    9. 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).

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