Articles

Globalization and the dynamics of cultural identity

J. OLIVIER, M. THOENIG, T. VERDIER

Journal of International Economics

December 2008, vol. 76, n°2, pp.356-370

Departments: Finance, GREGHEC (CNRS)

Keywords: Cultural identity, Cultural transmission, International trade

http://dx.doi.org/10.2139/ssrn.982386


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 cultural convergence and can counterbalance the effects of goods market integration.Cultural identityCultural transmissionInternational trade


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