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 Keto cultural dissimilarity.This study investigates the effect of network and culture on international trade, and a possible interaction between two effects.Empirical findings from the augmented gravity model using a bilateral data set of 34 OECD After Sun Care 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, followed by FDI and migration.