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Somatic Distance, Cultural Affinities, Trust And Trade

Author

Listed:
  • Jacques Melitz

    () (CREST; ENSAE; CEPII)

  • Farid Toubal

    () (CREST; ENS de Paris-Saclay; CEPII)

Abstract

Somatic distance, or differences in physical appearance, proves to be extremely important in the gravity model of bilateral trade in conformity with results in other areas of economics and outside of it in the social sciences. This is also true quite independently of survey evidence about bilateral trust. These findings are obtained in a sample of the 15 members of the European Economic Association in 1996. Robustness tests also show that somatic distance has a more reliable influence on bilateral trade than the other cultural variables. The article finally discusses the interpretation and the breadth of application of these results.

Suggested Citation

  • Jacques Melitz & Farid Toubal, 2018. "Somatic Distance, Cultural Affinities, Trust And Trade," Working Papers 2018-05, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2018-05
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Somatic distance; Cultural interactions; Trust; Language; Bilateral Trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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