2008
DOI: 10.1016/j.jinteco.2008.06.009
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Globalization and the dynamics of cultural identity

Abstract: This paper presents a simple model where micro-founded dynamics of cultural identity are endogenous and interact with an international trade equilibrium. This process generates a strong home bias under autarky. We then show that goods market integration causes a phenomenon of cultural divergence, whereby the distributions of cultures become more dissimilar across countries and one of the cultures that existed under autarky ultimately disappears. By way of contrast, we show that social integration causes cultur… Show more

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Cited by 62 publications
(27 citation statements)
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“…Finally, unlike all above papers but in common with Olivier, Thoenig and Verdier (2008) and Pagano (2007) we find contrasting convergence effects of trade integration and factor market integration; but our model and these two models share little else in common, the former illustrates the dynamics of the demand for "cultural goods" that contribute to group identity while the latter concerns intellectual property.…”
Section: Discussioncontrasting
confidence: 60%
See 1 more Smart Citation
“…Finally, unlike all above papers but in common with Olivier, Thoenig and Verdier (2008) and Pagano (2007) we find contrasting convergence effects of trade integration and factor market integration; but our model and these two models share little else in common, the former illustrates the dynamics of the demand for "cultural goods" that contribute to group identity while the latter concerns intellectual property.…”
Section: Discussioncontrasting
confidence: 60%
“…Here we explain how the decentralized updating of both preferences and contractual choices supports durable cultural and institutional differences that may provide a basis for specialization, comparative advantage, and hence trade, which in turn stabilizes the cultural and institutional differences. Our model hinges on the codetermination of institutions, cultures, and economic specialization, a nexus long-studied by economists with a historical bent (Gerschenkron, 1944;Kindleberger, 1962;Sokoloff and Engerman, 2000), but only recently modeled by economic theorists (Costinot, 2009;Bardhan, Mookherjee, and Tsumagari, 2009;Levchenko, 2007;Olivier, Thoenig, and Verdier, 2008).…”
mentioning
confidence: 99%
“…In the same way, Janeba (2007) who models cultural identity as the result of the interaction of individual consumption decisions, suggests that-under certain conditions-free trade does not Pareto-dominate autarky. Olivier et al (2008) build up a simple model where microfounded dynamics of cultural identity are endogenous and interact with an international trade equilibrium. They show that social integration causes cultural convergence and can counterbalance the effects of goods market integration.…”
Section: Trade In Cultural Goodsmentioning
confidence: 99%
“…Therefore, an increasing number of studies have investigated international trade by incorporating cultural factors (e.g., Francois and van Ypersele, 2002;Bala and van Long, 2005;Janeba, 2007;Olivier et al, 2008). According to Rauch and Trinidad (2009), people enjoy an intrinsic consumption value of imported cultural goods, which leads to an increase in welfare in the short run.…”
Section: Introductionmentioning
confidence: 99%