“…Our paper contributes to the literature that studies the role of cultural ties in economic and financial exchanges (see, for example, Guiso, Sapienza, and Zingales, 2009;Disdier and Mayer, 2007;Rose, 2000;Helpman, Melitz, and Rubinstein, 2008;Accetturo, Cascarano, Degasperi, and Modena, 2019). Most of these studies highlight the roles of trust and social capital, transaction costs, and bilateral affinity in the emergence of same-culture transactions.…”