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Economics

2010

Bilateral trade

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Cultural Distance As A Determinant Of Bilateral Trade Flows: Do Immigrants Counter The Effect Of Cultural Distance?, Roger White, Bedassa Tadesse Feb 2010

Cultural Distance As A Determinant Of Bilateral Trade Flows: Do Immigrants Counter The Effect Of Cultural Distance?, Roger White, Bedassa Tadesse

Economics

We introduce ‘cultural distance’ as a measure of the degree to which shared norms and values in one country differ from those in another country, and employ a modified gravity specification to examine whether such cultural differences affect the volume of trade flows. Employing data for US statelevel exports to the 75 trading partners for which measures of cultural distance can be constructed, we find that greater cultural differences between the United States and a trading partner reduces state-level exports to that country. This result holds for aggregate exports, cultural and noncultural products exports as well, but with significantly different …