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Trade Openness and Culture

Author

Listed:
  • Christopher Coyne

    (Department of Economics, West Virginia University)

  • Claudia Williamson

    (Department of Economics, New York University)

Abstract

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.

Suggested Citation

  • Christopher Coyne & Claudia Williamson, 2009. "Trade Openness and Culture," Working Papers 09-05, Department of Economics, West Virginia University.
  • Handle: RePEc:wvu:wpaper:09-05
    as

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    File URL: http://be.wvu.edu/phd_economics/pdf/09-05.pdf
    File Function: First version, 2009
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. Mary M. Shirley, 2008. "Institutions and Development," Books, Edward Elgar Publishing, number 12524.
    5. 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.
    6. Durham, J Benson, 1999. "Economic Growth and Political Regimes," Journal of Economic Growth, Springer, vol. 4(1), pages 81-111, March.
    7. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, vol. 139(3), pages 371-387, June.
    8. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    9. Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters,in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
    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.
    11. repec:cup:apsrev:v:91:y:1997:i:03:p:531-551_21 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nabamita Dutta & Deepraj Mukherjee, 2012. "Is culture a determinant of financial development?," Applied Economics Letters, Taylor & Francis Journals, vol. 19(6), pages 585-590, April.
    2. Nabamita Dutta & Sanjukta Roy, 2013. "The changing face of culture: gauging the impact of a free media," European Journal of Law and Economics, Springer, vol. 36(1), pages 95-115, August.
    3. Forson, Joseph Ato & Janrattanagul, Jakkaphong & Carsamer, Emmanuel Carsamer, 2013. "Culture Matters: A Test of Rationality on Economic Growth," MPRA Paper 56825, University Library of Munich, Germany.
    4. Claudia R. Williamson & Carrie B. Kerekes, 2011. "Securing Private Property: Formal versus Informal Institutions," Journal of Law and Economics, University of Chicago Press, vol. 54(3), pages 537-572.
    5. Shaker, Saber Adly, 2017. "الأبعاد الثقافية للتجارة الدولية: حالة دول إتفاقية أغادير
      [The Cultural Dimensions of International Trade: The Case of AGADIR Agreement countries]
      ," MPRA Paper 81761, University Library of Munich, Germany, revised 2017.
    6. Ahmad, Mahyudin & Hall, Stephen G., 2014. "Explaining social capital effects on growth and property rights via trust-alternative variables," MPRA Paper 58358, University Library of Munich, Germany.
    7. Williamson, Claudia R., 2012. "Dignity and development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 763-771.

    More about this item

    Keywords

    culture; informal institutions; trade openness;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P50 - Economic Systems - - Comparative Economic Systems - - - General
    • Z1 - Other Special Topics - - Cultural Economics

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