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Cultural Barriers and Agricultural Trade in the Western Hemisphere

  • Susanto, Dwi
  • Rosson, C. Parr, III
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    This study analyzes the impacts of cultural distance on bilateral trade flows in the Western Hemisphere using a Fixed Effects Vector Decomposition (FEVD). Four cultural dimensions of Hofstede are used to capture cultural distance. The results found that the effects of each dimension vary considerably with three of four dimensions (UAI, PDI, and MFI) have a negative impact and one dimension (ICI) has a positive effect. The magnitude of ICI is large enough to offset the negative effects of the other three dimensions resulting in a net positive effect of cultural distance, suggesting that culturally-dissimilar countries trade more than less.

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    File URL: http://purl.umn.edu/56352
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    Paper provided by Southern Agricultural Economics Association in its series 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida with number 56352.

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    Date of creation: 2010
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    Handle: RePEc:ags:saea10:56352
    Contact details of provider: Web page: http://www.saea.org/

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    1. Henri L. F. de Groot & Gert-Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, vol. 57(1), pages 103-123, 02.
    2. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 49-63.
    3. Anne-Célia Disdier & Keith Head, 2004. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," Development Working Papers 186, Centro Studi Luca d\'Agliano, University of Milano.
    4. repec:dgr:uvatin:20030082 is not listed on IDEAS
    5. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
    6. repec:dgr:uvatin:20050074 is not listed on IDEAS
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