Genetic distance, cultural differences, and the formation of regional trade agreements

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dc.contributor.authorHeid, B.
dc.contributor.authorLu, W.
dc.date.issued2021
dc.description.abstractGenetic distance between countries’ populations has been shown to proxy crosscountry diferences in cultures and preferences. In an unbalanced panel of 133 countries from 1970 to 2012, the study fnds that higher genetic distance between two countries decreases their probability of having a trade agreement, even when controlling for geographic distance and other controls. The impact of cultural differences proxied by genetic distance is persistent over time and economically signifcant: While increasing the geographic distance between two countries by 1% decreases the probability of a regional trade agreement by 0.11% points, increasing their genetic distance by 1% decreases the probability by 0.06% points.
dc.description.statementofresponsibilityBenedikt Heid and Wenxi Lu
dc.identifier.citationReview of World Economics, 2021; 158(1):1-23
dc.identifier.doi10.1007/s10290-021-00410-9
dc.identifier.issn1610-2878
dc.identifier.issn1610-2878
dc.identifier.orcidHeid, B. [0000-0002-2313-8614]
dc.identifier.urihttps://hdl.handle.net/2440/140189
dc.language.isoen
dc.publisherSpringer
dc.relation.granthttp://purl.org/au-research/grants/arc/DP190103524
dc.rights© Kiel Institute 2021
dc.source.urihttps://doi.org/10.1007/s10290-021-00410-9
dc.subjectTrade agreements; Trade policy; Trade negotiations; Genetic distance; Cultural diferences
dc.titleGenetic distance, cultural differences, and the formation of regional trade agreements
dc.typeJournal article
pubs.publication-statusPublished

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