Neckties in the Tropics: A Model of International Trade and Cultural Diversity
Some cultural goods, like clothes and films, are consumed socially and are thus characterized by the same consumption network externalities as languages. At the sametime, producers of new cultural goods in any one country draw on the stock of ideasgenerated by previous cultural production in all countries. For such goods, costless tradeand communication tend to lead to the dominance of one cultural style, increasing utilityin the short run but reducing quality and generating cultural stagnation in the long run.Increasing trade costs while keeping communication costs low may reduce welfare bystimulating production of cultural goods that are compatible with the dominant style,thereby capturing consumption network externalities, but that add little to the stock ofusable ideas. Our two-country analysis suggests a reform of cultural policy wherebyimport restrictions in the smaller country are removed, and are replaced by subsidies tothe fixed costs of production of new cultural goods in its traditional style.
|Date of creation:||30 Nov 2005|
|Contact details of provider:|| Postal: 118 Professional Building, Columbia, MO 65211|
Phone: (573) 882-0063
Fax: (573) 882-2697
Web page: http://economics.missouri.edu/
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.:
- Bala, Venkatesh & Van Long, Ngo, 2005. "International trade and cultural diversity with preference selection," European Journal of Political Economy, Elsevier, vol. 21(1), pages 143-162, March.
- Ottaviano, Gianmarco & Peri, Giovanni, 2004.
"The Economic Value of Cultural Diversity: Evidence from US Cities,"
CEPR Discussion Papers
4233, C.E.P.R. Discussion Papers.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "The economic value of cultural diversity: evidence from US cities," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 9-44, January.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," NBER Working Papers 10904, National Bureau of Economic Research, Inc.
- GianMarco Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US cities," Econometric Society 2004 North American Summer Meetings 91, Econometric Society.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," Working Papers 2004.34, Fondazione Eni Enrico Mattei.
- Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CESifo Working Paper Series 1117, CESifo Group Munich.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Jordi Sintas & Ercilia Álvarez, 2002. "The Consumption of Cultural Products: An Analysis of the Spanish Social Space," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 115-138, May.
- B. Curtis Eaton & Krishna Pendakur & Clyde Reed, 2000. "Socializing, Shared Experience and Popular Culture," Discussion Papers dp00-13, Department of Economics, Simon Fraser University, revised May 2000.
- Andreu Mas-Colell, 1999. "Should Cultural Goods Be Treated Differently?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(1), pages 87-93, March.
- Francois, Patrick & van Ypersele, Tanguy, 2002. "On the protection of cultural goods," Journal of International Economics, Elsevier, vol. 56(2), pages 359-369, March.
- N. Jayaram & Surendra K. Gupta & A.P. Barnabas & Sachchidananda & P.S. Pachauri & M.L. Khattar & B.N. Sampath & H. R. Khanna, 1985. "India," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 177-179, January.
- Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
- Eckhard Janeba, 2004. "International Trade and Cultural Identity," NBER Working Papers 10426, National Bureau of Economic Research, Inc.
- Nina Pavcnik, 2002. "Trade Disputes in the Commercial Aircraft Industry," The World Economy, Wiley Blackwell, vol. 25(5), pages 733-751, 05.
When requesting a correction, please mention this item's handle: RePEc:umc:wpaper:0517. 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: (Valerie Kulp)
If references are entirely missing, you can add them using this form.