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Globalization and the Dynamics of Cultural Identity

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  • Jacques Olivier

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • M. Thoenig

Abstract

This paper presents a simple model where micro-founded dynamics of cultural identity are endogenous and interact with an international trade equilibrium. This process generates a strong home bias under autarky. We then show that goods market integration causes a phenomenon of cultural divergence, whereby the distributions of cultures become more dissimilar across countries and one of the cultures that existed under autarky ultimately disappears. By way of contrast, we show that social integration causes cultural convergence and can counterbalance the effects of goods market integration.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jacques Olivier & M. Thoenig, 2006. "Globalization and the Dynamics of Cultural Identity," Post-Print halshs-00121092, HAL.
    • Handle: RePEc:hal:journl:halshs-00121092
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