Does China’s trade defy cultural barriers?

Bedassa Tadesse, Roger White, Huang Zhongwen

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

Using annual data for China and 88 trading partners that span the period 1995–2011, we estimate whether cross-societal cultural differences influence China’s external trade flows. Our results, obtained from the estimation of a series of multi-level mixed effect random intercepts and coefficients models, indicate that China’s aggregate exports and imports are largely unaffected by the cultural distance between China and its trading partners. Examination of disaggregate trade measures and consideration of the underlying dimensions of our composite cultural distance variable produces a largely similar result. Taken collectively, our results suggest that China’s trade is less affected by cultural distance than has been reported for other countries in similar studies.

Original languageEnglish (US)
Pages (from-to)398-428
Number of pages31
JournalInternational Review of Applied Economics
Volume31
Issue number3
DOIs
StatePublished - May 4 2017

Keywords

  • China
  • cultural distance
  • exports
  • gravity model
  • imports

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