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Trade Openness and Culture

  • Christopher Coyne

    (Department of Economics, West Virginia University)

  • Claudia Williamson

    (Department of Economics, New York University)

This paper empirically analyzes the effect of trade openness on culture, measured by indicators of trust, respect for others, perceived level of self-determination, and level of obedience. These cultural categories play a central role in encouraging or limiting economic and social interactions and therefore impact economic outcomes. We find that trade openness has a positive and highly significant impact on culture. The more open a country is to trade, the more likely it is to possess culture conducive to increased social and economic interactions. This result is robust to the inclusion of a variety of control variables, different model specifications, and alternative trade measures.

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File URL: http://www.be.wvu.edu/phd_economics/pdf/09-05.pdf
File Function: First version, 2009
Download Restriction: no

Paper provided by Department of Economics, West Virginia University in its series Working Papers with number 09-05.

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Length: 54 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:wvu:wpaper:09-05
Contact details of provider: Postal: P.O. Box 6025, Morgantown, WV 26506-6025
Phone: (304) 293-7859
Fax: (304) 293-2233
Web page: http://www.be.wvu.edu/phd_economics/
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  1. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
  2. Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers.
  3. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
  4. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
  5. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
  6. Durham, J Benson, 1999. " Economic Growth and Political Regimes," Journal of Economic Growth, Springer, vol. 4(1), pages 81-111, March.
  7. Licht, Amir N. & Goldschmidt, Chanan & Schwartz, Shalom H., 2007. "Culture rules: The foundations of the rule of law and other norms of governance," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 659-688, December.
  8. Mary M. Shirley, 2008. "Institutions and Development," Books, Edward Elgar, number 12524.
  9. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, vol. 139(3), pages 371-387, June.
  10. Kenneth S. Chan, 2007. "Trade, Social Values, and the Generalized Trust," Southern Economic Journal, Southern Economic Association, vol. 73(3), pages 733–753, January.
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