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Distance, Transaction Costs, and Preferences in European Trade
Copenhagen Busienss School.
Ratio Institute, Stockholm.ORCID iD: 0000-0001-9542-9106
2014 (English)In: The international trade journal, ISSN 0885-3908, E-ISSN 1521-0545, Vol. 28, no 2, 87-120 p.Article in journal (Refereed) Published
Abstract [en]

Beckerman (1956) and Linder (1961) have suggested that international trade is not determined by supply-side factors alone—perceptions about foreign countries and country preferences matter. We explore the relation between exports, cultural distance, and country preferences in Europe. The results show that several distance and preference-related variables, based on Hofstede’s cultural dimensions, income gaps, and voting patterns in the Eurovision Song Contest, are significantly related to bilateral trade. We conclude that cultural distance and preferences influence trade through several channels, both indirectly through transaction costs and more directly, as countries seem to prefer some trade partners before others.

Place, publisher, year, edition, pages
2014. Vol. 28, no 2, 87-120 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:sh:diva-24604DOI: 10.1080/08853908.2013.830941Scopus ID: 2-s2.0-84897976245OAI: oai:DiVA.org:sh-24604DiVA: diva2:747703
Available from: 2014-09-17 Created: 2014-09-17 Last updated: 2017-05-31Bibliographically approved

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Gustavsson Tingvall, Patrik
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CiteExportLink to record
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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
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More styles
Language
  • de-DE
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  • Other locale
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Output format
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