Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180366 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences No. 18-2018
Publisher: 
Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften, Stuttgart
Abstract: 
In this essay I use the GLOBE research study by House et al. (2013) as a proxy for measuring cultural distance. Unlike other studies, GLOBE introduces nine cultural dimensions and focuses exclusively on managers, allowing for a distinct glimpse into the values of people actually making trade decisions. I make use of a state-of-the-art PPML approach using data on international trade flows together with intra-national trade flows (Yotov, 2012) and a comprehensive set of fixed effects to consistently estimate a gravity equation using a panel from 1995 to 2004. I distinguish between different industries by following the goods classification introduced by Rauch (1999). The results show that cultural differences indeed effect trade values differently over time, but their size and impact depends on the chosen measure of cultural distance and on the industry classification.
Subjects: 
Cultural Distance
International Trade
Panel Gravity Model
PPML
JEL: 
F14
M14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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