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

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  • 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. Certains biens culturels sont consommés socialement et sont caractérisés par les mêmes externalités de réseau que les langues. Les producteurs de nouveaux biens culturels dans un pays quelconque tirent leur inspiration de la production culturelle antérieure dans tous les pays. Pour de tels biens, commerce et communication sans coûts tendent à permettre la dominance d'un style culturel – accroissant l'utilitéà court terme mais réduisant les niveaux de qualité et de bien‐être à long terme. Le fait d'accroître le niveau de protection tout en gardant les coûts de communication bas peut stimuler la production de biens culturels qui sont ≪compatibles≫ avec le style dominant, ajoutant peu au stock des idées utilisables.

Suggested Citation

  • James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 809-843, August.
  • Handle: RePEc:wly:canjec:v:42:y:2009:i:3:p:809-843
    DOI: 10.1111/j.1540-5982.2009.01528.x
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    1. James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 809-843, August.
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    11. Francois, Patrick & van Ypersele, Tanguy, 2002. "On the protection of cultural goods," Journal of International Economics, Elsevier, vol. 56(2), pages 359-369, March.
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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. 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.
    3. James E. Rauch & Vitor Trindade, 2009. "Neckties in the tropics: a model of international trade and cultural diversity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 809-843, August.
    4. 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.
    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. 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.
    7. Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2021. "Language, internet and platform competition," Journal of International Economics, Elsevier, vol. 131(C).
    8. 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.
    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. repec:hal:spmain:info:hdl:2441/10141 is not listed on IDEAS
    11. 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.
    12. 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.
    13. 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.
    14. Maria MASOOD, 2014. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," Working Papers P85, FERDI.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mcn8chn is not listed on IDEAS
    20. Jaeok Park, 2015. "Cultural Barriers in International Trade and the," Korean Economic Review, Korean Economic Association, vol. 31, pages 267-300.
    21. 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.
    22. 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.
    23. 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.
    24. 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.
    25. Janeba, Eckhard, 2007. "International trade and consumption network externalities," European Economic Review, Elsevier, vol. 51(4), pages 781-803, May.

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    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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