Abstract
International trade is one of the main economic forces on which to base the post-crisis economic recovery. The motivations that induce companies towards specific foreign markets and governments to propose commercial agreements are known. However, another underestimated factor acts to profoundly influence import and export decisions, i.e. cultural affinity. We calculate the cultural distance between the Euro countries, which are homogeneous in terms of development paths, trade agreements and even a single currency, in addition to spatial proximity. Our analysis calculates the cultural distance and the exchange relations of each country with all the other members of the Euro area. Our results allow us to observe how the cultural proximity acts on international trade, with particular reference to the post-crisis period. Our analysis suggest the presence of two homogeneous groups of countries, West and East Europe. The lower cultural distance within the two (relatively) homogeneous groups less hinders economic agents of each single country in the decisions to enter the other’s market.
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Furia, D., Odoardi, I., Ronsisvalle, D. (2020). Does Cultural Distance Affect International Trade in the Eurozone?. In: Bucciarelli, E., Chen, SH., Corchado, J. (eds) Decision Economics: Complexity of Decisions and Decisions for Complexity. DECON 2019. Advances in Intelligent Systems and Computing, vol 1009. Springer, Cham. https://doi.org/10.1007/978-3-030-38227-8_18
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