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Cultural Proximity and Bilateral Trade in the European Union

Cyrus, Teresa L. (2011) Cultural Proximity and Bilateral Trade in the European Union. [Conference Proceedings] (Submitted)

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    Since its origins, the European Union has been focused on removing the barriers to the full integration of its members’ economies. But while formal institutions have adapted, have informal social norms also changed? In this paper, I use the variables from the World Values Survey to estimate the cultural “distance” between countries, with the goal of examining the extent to which cultural distance and bilateral trade are related. Gravity regressions are used to determine the extent to which cultural distance affects trade flows; I find that cultural distance reduces trade, but less for EU members than for the rest of the world. I then explore the determinants of cultural distance. For most country-pairs in the sample, trade is found to increase rather than decrease the cultural distance between countries, but for EU members, trade reduces cultural distance.

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    Item Type: Conference Proceedings
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > culture policy
    EU policies and themes > External relations > international trade
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Conference: European Union Studies Association (EUSA) > Biennial Conference > 2011 (12th), April 23-25, 2011
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 24 Oct 2019 14:00
    Number of Pages: 36
    Last Modified: 24 Oct 2019 14:00

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