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Cultural Distance and International Trade in Services: A Disaggregate View

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  • Harms, Philipp
  • Shuvalova, Daria

Abstract

We estimate the effect of “cultural distance” on bilateral trade in services. Our measure of cultural distance is based on scores that reflect individuals’ attitudes towards hierarchies, initiative, competition, uncertainty etc. Controlling for other standard ingredients of gravity equations, we show that cultural distance has a negative effect on services trade. However, the strength and sign of this effect differs across various aspects of cultural distance and for various types of services.

Suggested Citation

  • Harms, Philipp & Shuvalova, Daria, 2017. "Cultural Distance and International Trade in Services: A Disaggregate View," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168132, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168132
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    Cited by:

    1. Christine Côté & Saul Estrin & Daniel Shapiro, 2020. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 199-223, September.

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    JEL classification:

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

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