Does China’s Trade Defy Cultural Barriers?

Authors

Roger White, Whittier CollegeFollow
Bedassa Tadesse, University of Minnesota - DuluthFollow
Huang Zhongwen, Beijing Information Science and Technology University

Publication Date

3-2017

Document Type

Article

Publication Title

International Review of Applied Economics

Volume

31

Issue

3

Abstract

Using annual data for China and 88 trading partners that span the period 1995–2011, we estimate whether cross-societal cultural differences influence China’s external trade flows. Our results, obtained from the estimation of a series of multi-level mixed effect random intercepts and coefficients models, indicate that China’s aggregate exports and imports are largely unaffected by the cultural distance between China and its trading partners. Examination of disaggregate trade measures and consideration of the underlying dimensions of our composite cultural distance variable produces a largely similar result. Taken collectively, our results suggest that China’s trade is less affected by cultural distance than has been reported for other countries in similar studies.

Recommended Citation

White, R., Tadesse, B., & Zhongwen, H. (2017). Does China’s Trade Defy Cultural Barriers?. International Review of Applied Economics, 31 (3) Retrieved from https://poetcommons.whittier.edu/econ/39