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Genetic distance, trade, and the diffusion of development

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  • Vincenzo Bove
  • Gunes Gokmen

Abstract

The determinants of countries' long‐term income differences feature prominently in the literature. Spolaore and Wacziarg (The diffusion of development, Quarterly Journal of Economics, , 124, 469–529) argue that cultural differences, measured by countries' genetic distance, are an important barrier to the diffusion of development from the world's technological frontier. We revisit their findings in three ways. First, we successfully reproduce their results and confirm the robustness of their baseline findings. Second, we estimate their models for different time periods and find that the impact of genetic distance on income differences did not significantly change over time. Finally, we explore one of the underlying mechanisms of technology adoption and show that bilateral trade is one channel through which cultural differences retard the diffusion of development.

Suggested Citation

  • Vincenzo Bove & Gunes Gokmen, 2018. "Genetic distance, trade, and the diffusion of development," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(4), pages 617-623, June.
    • Handle: RePEc:wly:japmet:v:33:y:2018:i:4:p:617-623
    DOI: 10.1002/jae.2622
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    Cited by:

    1. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    2. Todea, Anita, 2022. "Ancestry barriers to the cross-border diffusion of global market information," Finance Research Letters, Elsevier, vol. 49(C).
    3. Todea, Alexandru & Todea, Anita, 2023. "Genetic distance and stock market integration," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    4. Jacques Melitz & Farid Toubal, 2019. "Somatic distance, trust and trade," Review of International Economics, Wiley Blackwell, vol. 27(3), pages 786-802, August.
    5. Xu, Chen & Xiong, Yan & Sun, Yuanxin & Liu, Yipeng, 2021. "Genetic distance, international experience and the performance of cross-border R&D for EMNEs," Journal of International Management, Elsevier, vol. 27(2).
    6. Jason Query & Jon C. Thompson, 2024. "Cultural Distance and International Trade," Open Economies Review, Springer, vol. 35(2), pages 283-300, April.
    7. Benedikt Heid & Wenxi Lu, 2022. "Genetic distance, cultural differences, and the formation of regional trade agreements," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 1-23, February.
    8. Olivier BARGAIN & Jean-Marie CARDEBAT & Raphaël CHIAPPINI, 2020. "Trade Uncorked: Genetic Resistance and Quality Heterogeneity in Wine Exports," Bordeaux Economics Working Papers 2020-18, Bordeaux School of Economics (BSE).
    9. Ideen A. Riahi, 2022. "Why Eurasia? A probe into the origins of global inequalities," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 16(1), pages 105-147, January.
    10. Bove, Vincenzo & Gokmen, Gunes, 2020. "Cultural distance and income divergence over time," Economics Letters, Elsevier, vol. 194(C).
    11. Dragomirescu-Gaina, Catalin, 2021. "Facing an unfortunate trade-off: policy responses, lessons and spill-overs during the COVID-19 pandemic," Economics & Human Biology, Elsevier, vol. 43(C).

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