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Product-based cultural change: Is the village global?

Author

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  • Nicolas Maystre

    (UNCTAD - United Nations Conference on Trade and Development - United Nations Conference on Trade and Development)

  • 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)

  • Mathias Thoenig

    (CEPR - Center for Economic Policy Research - CEPR, Faculty of Business and Economics - Université de Lausanne)

Abstract

We provide a model of product-based cultural change where trade integration leads to cultural convergence. A standard trade model of Dixit-Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics. We show that access to varieties that are attached to a global cultural type changes the incentives of parents to socialize their children and transmit their type. The resulting increase in agents of the global cultural type leads to a magnification of the initial shock. A striking feature of the model is that even temporary shocks to openness may have permanent effects through the changing distribution of preferences in the economy.

Suggested Citation

  • Nicolas Maystre & Jacques Olivier & Mathias Thoenig, 2014. "Product-based cultural change: Is the village global?," Post-Print halshs-00979107, HAL.
  • Handle: RePEc:hal:journl:halshs-00979107 DOI: 10.1016/j.jinteco.2013.10.005 Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00979107
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    Cited by:

    1. ROUGIER Eric, 2015. "\"The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA 2015-12, Groupe de Recherche en Economie Théorique et Appliquée.
    2. Keith Head & Thierry Mayer, 2013. "What separates us? Sources of resistance to globalization," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1196-1231, November.
    3. Maria Masood, 2015. "Local versus Foreign: A Microeconomic Analysis of Cultural Preferences," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 15051, Institut d'Economie et Econométrie, Université de Genève.
    4. Oberländer, L. & Disdier, A-C. & Etilé, F., 2016. "Globalisation and national trends in nutrition and health - a grouped fixed effects approach to inter-country heterogeneity," Health, Econometrics and Data Group (HEDG) Working Papers 16/18, HEDG, c/o Department of Economics, University of York.
    5. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, Elsevier.
    6. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    7. Jaeok Park, 2015. "Cultural Barriers in International Trade and the," Korean Economic Review, Korean Economic Association, vol. 31, pages 267-300.
    8. Maria Masood, 2015. "New Evidence on Development and the Diversity of Cultural Imports," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 15012, Institut d'Economie et Econométrie, Université de Genève.
    9. Maria Masood, 2012. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," CEPN Working Papers hal-00778502, HAL.
    10. Alessandra Cassar & Giovanna d'Adda & Pauline Grosjean, 2014. "Institutional Quality, Culture, and Norms of Cooperation: Evidence from Behavioral Field Experiments," Journal of Law and Economics, University of Chicago Press, vol. 57(3), pages 821-863.
    11. Maria MASOOD, 2014. "New Evidence on Development and Cultural Trade: Diversification, Reconcentration and Domination," Working Papers P85, FERDI.
    12. 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, pages 226-238.
    13. Giacomo Corneo & Frank Neher, 2014. "Income inequality and self-reported values," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 49-71, March.
    14. Abramson, Boaz & Shayo, Moses, 2017. "Grexit vs. Brexit: International Integration under Endogenous Social Identities," CAGE Online Working Paper Series 334, Competitive Advantage in the Global Economy (CAGE).
    15. Anne-Célia Disdier & Silvio Tai & Lionel Fontagné & Thierry Mayer, 2010. "Bilateral trade of cultural goods," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 575-595, January.
    16. 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.
    17. repec:aia:ginidp:dp17 is not listed on IDEAS
    18. 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.
    19. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CEPR Discussion Papers 7405, C.E.P.R. Discussion Papers.
    20. Isaac Holloway, 2014. "Foreign entry, quality, and cultural distance: product-level evidence from US movie exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 371-392, May.
    21. Alessandra Cassar & Giovanna d'Adda & Pauline Grosjean, 2013. "Institutional Quality, Culture, and Norms of Cooperation: Evidence from a Behavioral Field Experiment," Discussion Papers 2013-10, School of Economics, The University of New South Wales.
    22. Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CESifo Working Paper Series 2714, CESifo Group Munich.
    23. Giacomo Corneo, 2011. "GINI DP 17: Income Inequality, Value Systems and Macroeconomic Performance," GINI Discussion Papers 17, AIAS, Amsterdam Institute for Advanced Labour Studies.
    24. Alessia LO TURCO & Daniela MAGGIONI, 2016. "For God's sake. The impact of religious proximity on firms' exports," Working Papers 418, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

    More about this item

    Keywords

    Culture; Trade; Persistence; Homogenization;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z1 - Other Special Topics - - Cultural Economics

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