Cultural proximity: A source of trade flow resilience?

Autor:	Céline Carrère, Maria Masood
Rok vydání:	2018
Předmět:	Economics and Econometrics 050208 finance Ethnocentrism Moral hazard media_common.quotation_subject 05 social sciences Recession Bilateral trade Shock (economics) Gravity model of trade Accounting 0502 economics and business Political Science and International Relations Financial crisis Economics Psychological resilience Economic geography 050207 economics Finance media_common
Zdroj:	The World Economy. 41:1812-1832
ISSN:	0378-5920
DOI:	10.1111/twec.12646
Popis:	While the significant influence of cultural proximity on bilateral trade flows has been extensively documented in the literature, its possible role in times of crisis has not yet been raised. Relying on a panel estimation of a gravity model incorporating cultural proximity parameters, we evidence the existence of a significant surge in the impact of the different components of cultural proximity during economic recession. The trade resilience among countries sharing a cultural bond is not a pure composition effect as it also appears within product categories. To understand this unexpected effect, we discuss different mechanisms that emphasise the potential mitigating influence of cultural proximity on some determinants of the trade collapse, namely the uncertainty shock, the increased moral hazard and the emergence of ethnocentric preferences.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::cf4b7f298f103db912f9fe903eef3777 https://doi.org/10.1111/twec.12646 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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