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<p>This study examined the influence of cultural context and linguistic proximity on bilateral trade using a modified gravity model. The analysis incorporated trade data from 117 countries,&#xa0;encompassing 6,623&#xa0;bilateral trading relationships. Bilateral trade was modeled as a function of cultural context, linguistic proximity, and other relevant economic and geographic factors. The results suggested that linguistic proximity does not appear to have a statistically significant effect on bilateral trade when evaluating total trade. However, the findings support the notion that cultural context distance plays a role in promoting trade. Specifically, sharing the same cultural context was associated with reduced bilateral trade, whereas greater cultural context distance between trading partners appeared to enhance trade.</p>

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The impact of cultural factors on international trade: an empirical analysis

  • 期刊论文

  • 发表日期：

    2025年6月9日

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  • Ziad Ghaith,
  • Donald Wagner

摘要

This study examined the influence of cultural context and linguistic proximity on bilateral trade using a modified gravity model. The analysis incorporated trade data from 117 countries, encompassing 6,623 bilateral trading relationships. Bilateral trade was modeled as a function of cultural context, linguistic proximity, and other relevant economic and geographic factors. The results suggested that linguistic proximity does not appear to have a statistically significant effect on bilateral trade when evaluating total trade. However, the findings support the notion that cultural context distance plays a role in promoting trade. Specifically, sharing the same cultural context was associated with reduced bilateral trade, whereas greater cultural context distance between trading partners appeared to enhance trade.