Cultural Influences on International Economic Analysis (II)

Abstract

As noted in Chapter 6, a number of quantitative studies have been made on the role that cultural factors play in international trade.¹ These studies minimize the importance of cultural variables, treating linguistics as a dummy variable² and omitting altogether the possible inference of religion.

A man from the state of Chu was crossing a river. When the ferry got to the middle of the river, his sword fell into the water. Immediately he took out a knife from his pocket and made a mark on the boat. ‘This is where my sword fell off,’ he murmured and stepped aside, much relieved. The ferry sailed on and soon got to the dock on the opposite bank. As soon as the boat anchored, the man jumped into the water to look for his sword at the place where he had marked the boat. The boat had moved but the sword had not. Is this not a very foolish way to look for a sword?

(Lü Buwei, (?)–235 bc)