Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2009-03-03
Number: 09-021/3
Author-Name: Jan Möhlmann
Author-Workplace-Name: VU University Amsterdam
Author-Name: Sjef Ederveen
Author-Workplace-Name: Ministry of Economic Affairs
Author-Name: Henri L.F. de Groot
Author-Workplace-Name: VU University Amsterdam
Author-Name: Gert-Jan M. Linders
Author-Workplace-Name: VU University Amsterdam
Title: Intangible Barriers to International Trade: A Sectoral Approach
Abstract: This paper studies the importance of intangible barriers to trade in explaining variation in disaggregate international trade. The analysis is based on a sample of 55 countries for the year 2000. We explicitly focus on the importance of institutional and cultural dimensions of distance. Our results reveal there is substantial heterogeneity in the impact of intangible barriers for different product groups. More specifically, we find that cultural differences do not affect total trade significantly, whereas trade in homogeneous goods is significantly negatively affected. A possible explanation for this pattern is that the substitution effect between trade and FDI is stronger for more differentiated products.
Classification-JEL: F14
Keywords: bilateral trade, gravity model, intangible barriers, cultural distance, sectoral trade
File-Url: https://papers.tinbergen.nl/09021.pdf
File-Format: application/pdf
File-Size: 237202 bytes
Handle: RePEc:tin:wpaper:20090021