Does Cultural Distance Affect International Trade in the Eurozone?

Author(s):  
Donatella Furia ◽  
Iacopo Odoardi ◽  
Davide Ronsisvalle
2019 ◽  
Vol 2019 (1) ◽  
pp. 16438
Author(s):  
Mariya A. Bobina ◽  
Mikhail V. Grachev ◽  
Mary Sully De Luque

Author(s):  
Anca Tamaş

AbstractThe aim of this paper is to critically analyze the papers from the literature mainstream regarding the gravity model and to identify the main findings. The paper highlights the importance of studying the gravity model in the tertiary business education. Introduced by Tinbergen (1962), the gravity model was widely used to analyze the international trade flows in theoretical, as well as empirical studies. Alongside the classical determinants, economy size, market size and geographical distance, other variables which influence the trade flows were found: trade agreements, foreign direct investments, exchange rate, trade taxes, cultural distance, migration, remoteness, knowledge capital, technological development. There are many controversies regarding the zeroes problem within the model, as well as many controversies on the solutions of the zeroes problem. A meta-analysis and systematic review of the relevant literature in the last 56 years was conducted. From author’s knowledge, this study is the most extended literature review on the gravity model, covering more than 50 years of research. Despite all the theoretical controversies, the gravity model proved to be a robust one, with a great power of explanation in more than 80% of the dynamics and structure of the trade flows. Therefore, the gravity model should be considered a valuable analysis tool in teaching and studying in tertiary business education: international trade, econometrics, statistics, trade policy and so on.


2017 ◽  
Vol 18 (2) ◽  
pp. 102-125
Author(s):  
Mikhail Grachev ◽  
Mariya Bobina

This study examines the impacts of non-market factors on international trade in four regionally clustered African countries (Namibia, South Africa, Zambia, and Zimbabwe). It applies the concept of cross-national distance from international business and incorporates statistical and empirically generated data into the augmented gravity models of international trade to predict the impact of those non-market factors. The study reveals negative effects of geographic distance and positive or mixed cultural distance effects in these countries’ foreign trade flows. This paper also suggests useful implications to business scholars and practitioners.


Author(s):  
И. А. Новиков ◽  
Н. Д. Лихарева

увеличением темпов глобализации, развитием транспортных и информационных технологий, вовлечением в международную торговлю большого количества компаний разного размера всё более широкий спектр факторов оказывает влияние на объём и географическую направленность торговли. В этой статье проверяется гипотеза, что при выходе на зарубежные рынки важную роль, наряду с географической дистанцией и ВВП стран-партнёров (классическая гравитационная модель) должна играть так называемая «психологическая дистанция». Сингапур, Гонконг, Республика Корея и Тайвань – экономики Азиатско-Тихоокеанского региона, которые показывали впечатляющие результаты развития с конца XX в. Одна из причин быстрого роста – ориентированность экономик на экспорт. В структуре внешней торговли «азиатских тигров» первичные товары составляют не более 2%. В то же время, экспорт именно производственных товаров, для которых характерно непостоянство качества, неоднородность и наличие специфических характеристик, должен быть подвержен сильному влиянию психологической дистанции. Успех таких товаров на иностранном рынке во многом зависит от индивидуальных ка-честв товара и маркетинговой стратегии продавца. В данной статье представлены результаты исследования влияния ряда факторов, помимо лежащих в основе грави-тационной модели, на экспортные потоки четырёх «азиатских тигров» – Сингапура, Гонконга, Южной Кореи и Тайваня в 88 стран. С помощью регрессионного анализа была протестирована связь между независимыми переменными (культурная дис-танция, прочие определяющие факторы психологической дистанции, разница во времени и наличие соглашений о свободной торговле) и объёмом экспорта в каж-дую из 88 торговых стран-партнёров. В качестве контрольных переменных высту-пили показатели гравитационной модели (физическое расстояние и ВВП). По ре-зультатам исследования авторы пришли к выводу, что полная картина зависимости экспортных потоков, в частности от психологической дистанции, неоднозначна. Возможно, существующие модели измерения психологической дистанции на уров-не страны требуют изменений, пересмотра включаемых факторов. Ключевые слова: международная торговля, экспорт, гравитационная модель, культурная дистанция, психологическая дистанция, определяющие факторы психо-логической дистанции, «азиатские тигры», Гонконг, Сингапур, Тайвань, Республи-ка Корея, регрессионный анализ. As the pace of globalization accelerates, the transport and information technologies develop even more rapidly, and a large number of companies of different sizes get involved in international trade, wider range of factors affect the volume and geographic focus of trade. This article tests the hypothesis that while entering foreign markets, along with the geographical distance and GDP of partner countries (the classical gravity model), the "psychic distance", also, plays an important role. Singapore, Hong Kong, South Korea, and Taiwan are the economies of the Asia-Pacific region that have achieved impressive development goals since the end of the 20th century. Rapid growth was partially triggered by the export orientation of these economies. In the foreign trade structure of the "Four Asian Tigers", primary goods make up no more than 2%. At the same time, the exports of manufactured goods – which exhibit inconsistency in quality, heterogeneity, and various specific features – should be strongly influenced by the psychic distance. The success of such products sales in the foreign market largely depends on the individual qualities of the product and the seller's marketing strategy. This article presents the results of a study of the influence of a number of factors, in addition to those underlying the gravity model, on the export flows of the "Four Asian Tigers" (Singapore, Hong Kong, South Korea, and Taiwan) to 88 countries. The relationship between the ex-planatory variables (cultural distance, other determinants of psychic distance, time differ-ence and the existence of free trade agreements) and the volume of exports to each of the 88 trading partners was tested by using regression analysis. The gravity model indicators (physical distance and GDP) were used as control variables. Based on the results of the study, the authors came to the conclusion that the complete picture of the dependence of export flows, in particular, on psychic distance, is ambiguous. Perhaps the existing models for measuring psychic distance at the country level require changes, a revision of the factors included. Keywords. International trade, export, gravity model, cultural distance, psychic dis-tance, psychic distance stimuli, Four Asian Tigers, Hong Kong, Singapore, Taiwan, Re-public of Korea, regression analysis.


Author(s):  
Avinash Dixit ◽  
Victor Norman
Keyword(s):  

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