Measuring country-to-country cultural distance through individual differences in values and its influence on the global trade
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Measuring country-to-country cultural distance through individual differences in values and its influence on the global trade
Annotation
PII
S042473880000001-0-1
Publication type
Article
Status
Published
Authors
Sergey Shulgin 
Occupation: Deputy head of the international laboratory of political demography and macrosociological dynamics Ranepa
Affiliation: RANEPA
Address: Russian Federation
Andrey Korotayev
Occupation: head of the Laboratory of monitoring of risks of sociopolitical destabilization National Research University Higher School of Economics, leading researcher of the Institute of Oriental studies of the Russian Academy of Sciences; Professor FGP MSU
Affiliation: RANEPA
Address: Russian Federation
Aleksey Andreev
Occupation: vice-dean, Faculty of Global Studies, Lomonosov Moscow State Universtity
Affiliation: Moscow State University Mv Lomonosov
Address: Russian Federation, Мoscow, 119992 Moscow Leninskie Gory, house 1 building 13
Yu. Zinkina
Occupation: Senior Researcher, International Laboratory o Demography and Human Capital, RANEPA
Affiliation: RANEPA
Address: Russian Federation
Pages
3-25
Abstract
The paper proposes a method for measuring the country-to-country cultural distance. This method is based on the analysis of the differences in values of individuals residing in these countries. These differences are assessed through an innovative ensemble of five metrics (Mahalanobis distance, Euclidean distance, L-distance, as well as normalized versions of Euclidean and L-distances), – the MELNN ensemble, compiled through factor analysis. For each individual we find “neighbors in values”, i.e. other individuals with possibly closest MELNN scores. We proceed to build a network interaction model on the basis of MELNN scores so that we could differentiate between the “neighbors in values” of different orders (direct neighbors, neighbors’ neighbors etc.). Analyzing the closeness of each individual from any single country to the individuals from different countries eventually allows to define the cultural distance between these countries. We use the obtained values of country-to-country cultural distances in a gravity model, where they prove it to be a significant factor influencing the structure of bilateral trade.
Keywords
global trade; values; world value survey; cultural distance; neighbors in values; metrics ensemble; MELNN; Mahalanobis distance; Euclidean distance; L-distance; gravity model
Received
13.11.2018
Date of publication
14.11.2018
Number of purchasers
6
Views
771
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0.0 (0 votes)
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