Culture, Network, and International Trade

Culture, Network, and International Trade

Blog Article

Culture and network may be interacted according to their impact on international trade, in such a way that networks alleviate the negative effect of cultural dissimilarity.This study investigates the effect of network and culture on international trade, and a possible interaction between two effects.Empirical Jacket findings from the augmented gravity model using a bilateral data set of 34 OECD countries confirm the positive effect of cultural proximity and network on trade.More importantly, the findings also reveal an interaction effect in a way that networks, such as FDI, migration and internet, play a significant role in mitigating the deterrent effect of culture dissimilarity on international trade.The internet is found to have the strongest interaction effect, Charcoal Supplements followed by FDI and migration.