Genetic distance, cultural differences, and the formation of regional trade agreements
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comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
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INVESTIGACIONMetadata
Title
Genetic distance, cultural differences, and the formation of regional trade agreementsDate
2022Publisher
Springer; Kiel Institute for the World EconomyISSN
1610-2878; 1610-2886Bibliographic citation
HEID, Benedikt; LU, Wenxi. Genetic distance, cultural differences, and the formation of regional trade agreements. Review of World Economics, 2022, vol. 158, p.1-23Type
info:eu-repo/semantics/articlePublisher version
https://link.springer.com/article/10.1007/s10290-021-00410-9Version
info:eu-repo/semantics/publishedVersionSubject
Abstract
Genetic distance between countries’ populations has been shown to proxy
cross-country differences in cultures and preferences. In an unbalanced panel of 133
countries from 1970 to 2012, we find that higher genetic ... [+]
Genetic distance between countries’ populations has been shown to proxy
cross-country differences in cultures and preferences. In an unbalanced panel of 133
countries from 1970 to 2012, we find 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 significant: While increasing
the geographic distance between two countries by one percent decreases the probability
of a regional trade agreement by 0.11 percentage points, increasing their genetic distance
by one percent decreases the probability by 0.06 percentage points. [-]
Is part of
Review of World Economics, 2022, vol. 158, p.1-23Funder Name
Australian Research Council | National Natural Science Foundation of China
Project code
DP190103524 | 91846301
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This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s10290-021-00410-9
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