The gravity models of trade have mostly focused on economic variables-such as countries’ GDP, transportation costs, tariffs-to explain the pattern of flows of goods across countries. It is, instead, only recently that the concept has become central in the trade literature. Ambos & Hakanson, 2014 Hofstede, 1980) and it is considered as one of the main core constructs of this field of research. Specifically, the role of cultural ‘distance’ in the international management literature is quite well explored and measured (e.g.
Cepii geodist database distance unit driver#
The importance of culture as a driver of international economic flows has been extensively studied by the international business literature.
Also, the convergence effect turns to be completely driven by trade flows of differentiated goods which entail relationship-specific investments and a deeper commitment between contracting parties. Common ancestry, religion and legal system as well as high historical bilateral migration flows are necessary conditions for trade reducing cultural distance. Results confirm that international trade narrows differences in cultural beliefs and attitudes, but just when trade partners share some culture-related traits. By using World and European Values Surveys data, we provide evidence on the role of trade flows in favoring countries’ cultural convergence for a large sample of countries over the period 1989–2014. International trade eases contacts and increases trust among contracting parties and may, then, promote the spread of cultural beliefs across borders. Scant emphasis has, instead, been devoted to the investigation of the opposite direction of causality. Cultural proximity has been considered as a crucial determinant of bilateral trade flows.
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