Economic Cooperation and Social Identity: Towards a Model of Economic Cross-Cultural Integration
In arguing that borders not only should be understood as economic barriers to trade, but also as cultural barriers to interaction, this paper attempts to operationalize a broader interpretation of borders with regards to economic cross-cultural integration. Thus, by formalizing the cultural effects of borders as mental distances (interpreted as social identities), and by using an agentbased simulation model, I analyze how the border affects, and is itself affected by, economic integration. The model is based on two regions separated by a border. Based on expected payoffs and mental distance, agents first choose whether to interact at home or to cross the border. Then, agents choose their action in a simple PD game based on a general disposition of trust, as well as the mental distance should the interaction partner be from across the border. The agent’s mental distance and trust level are then updated according to the agent’s experience of the interaction (positive or negative). The model generally reveals that underlying cultural processes may affect the success of economic integration considerably, and suggests that the success of the integration depends significantly (and in asymmetric ways) on mental distances between regions, on economically vs. culturally motivated behavior, and on collectivistic vs. individualistic characters of the regional cultures.
|Date of creation:||27 May 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nielsen, Helena Skyt & Simonsen, Marianne & Verner, Mette, 2002.
"Does the Gap in Family-friendly Policies Drive the Family Gap?,"
02-19, University of Aarhus, Aarhus School of Business, Department of Economics.
- Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family-friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 721-744, December.
- Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, . "Does the Gap in Family-Friendly Policies Drive the Family Gap?," Economics Working Papers 2003-1, School of Economics and Management, University of Aarhus.
- Eriksson, Tor & Moritz Kuhn, Johan, 2006.
"Firm spin-offs in Denmark 1981-2000 -- patterns of entry and exit,"
International Journal of Industrial Organization,
Elsevier, vol. 24(5), pages 1021-1040, September.
- Eriksson, Tor & Kuhn, Johan Moritz, 2004. "Firm Spin-offs in Denmark 1981-2000 - Patterns of Entry and Exit," Working Papers 04-6, University of Aarhus, Aarhus School of Business, Department of Economics.
- Aycan Çelikaksoy & Helena Nielsen & Mette Verner, 2006.
"Marriage migration: just another case of positive assortative matching?,"
Review of Economics of the Household,
Springer, vol. 4(3), pages 253-275, 09.
- Celikaksoy, Aycan & Nielsen, Helena Skyt & Verner, Mette, 2003. "Marriage Migration: Just another case of positive assortative matching?," Working Papers 03-27, University of Aarhus, Aarhus School of Business, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2004_010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt)
If references are entirely missing, you can add them using this form.