Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286799 
Year of Publication: 
2021
Citation: 
[Journal:] Review of World Economics [ISSN:] 1610-2886 [Volume:] 158 [Issue:] 1 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2021 [Pages:] 253-304
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
Integrating the Global Preference Survey (GPS) and its data of unique scope on national preference structures in patience, risk attitude and reciprocity into a gravity framework, this paper is the first to explore a potential influence on international trade outcomes of economic and social preferences in a unified setting. Adding to the evidence on preferences’ importance for aggregate outcomes, the authors find marked differences in trade flows and relationships, both on the country-level and between bilateral partners. Their main results suggest that countries differing in their willingness to behave negatively reciprocal tend to trade significantly less amongst each other due to the destabilizing effect of unexpected punishments. On the other hand, countries that are patient or risk-averse tend to shift towards exporting more differentiated goods as opposed to homogeneous goods and vice versa. We propose term and risk transformation considerations as the driving mechanisms for this relationship.
Subjects: 
Trade determinants
Non-tariff barriers
Economic preferences
Sociocultural variation
JEL: 
F10
F14
D01
D91
Z10
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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