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Cultural distance, institutional distance and international trade

Author

Listed:
  • Sjoerd Beugelsdijk

    ()

  • Henri De Groot

    ()

  • Gert-Jan Linders

    ()

  • Arjen Slangen

    ()

Abstract

There is large variation in trade patterns across the world. Despite the popular discussion on the ‘death of distance’, distance is still the most important variable explaining this variation. In explaining trade patterns across the worls, it is important to acknowledge the multiple dimensions of distance. In this paper, we empirically investigate the relevance of several of these dimensions. Apart from physical distance, we also consider the effects of cultural distance and institutional distance. Our results reveal the importance of all three dimensions. JEL classification: F14 Keywords: bilateral trade, gravity models, cultural distance, institutional distance

Suggested Citation

  • Sjoerd Beugelsdijk & Henri De Groot & Gert-Jan Linders & Arjen Slangen, 2004. "Cultural distance, institutional distance and international trade," ERSA conference papers ersa04p265, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p265
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa04/PDF/265.pdf
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    References listed on IDEAS

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    1. Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer;Regional Science Association International, pages 211-230.
    2. Kim, Moshe & Spiegel, Menahem, 1987. "The effects of lump-sum subsidies on the structure of production and productivity in regulated industries," Journal of Public Economics, Elsevier, pages 105-119.
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    Cited by:

    1. Pogrebnyakov, Nicolai & Maitland, Carleen F., 2011. "Institutional distance and the internationalization process: The case of mobile operators," Journal of International Management, Elsevier, vol. 17(1), pages 68-82, March.
    2. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," DULBEA Working Papers 09-03.RS, ULB -- Universite Libre de Bruxelles.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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