The Influence Of Culture On Viet NAM International Economic Cooperation

Where is the origin of economic development? Ever since Adam Smith, many scholars have been trying to solve this problem.Classical economists thought that resource was the origin of economic development, new classical economists deemed the rapid development of technology was the main factor that demoted the economic development. Institutional economists think that not the same institution led to the different from economic effects. However, how to built the institution? Why did the institution effectiveness different in different areas,so more and more economists began to look the background of the institution, that was an invisible factor----Culture.International trade and International investment are the two main activities in international economic cooperation. International economic cooperation is not only economic activities, it is economic activities that happened between different culture carrier, and there is a close link from economic activities,geography,society and institution.International trade research scholars founded that the total volume of trade between countries less than the total volume of economic theory predicts.When the effect of geography distance on international trade and international investment more and more obvious,economists pay attention to research the role of culture on cross-border economic.Over the past few decades, the economic cooperation between two countries is decided by the political relation between two country.But, in the age of globalization, although the political relationship between two countries is not stable but the economic cooperation is still active.One of the reasons for this phenomenon is from the people-to-people cultural exchanges, NGO cultural exchanges,culture exchanges strengthen the trust between the two countries and reduce political tensions. The process of globalization and free trade agreements make movement of population and multinational FDI more and more frequently. And all activities related to transnational countries have faced with cultural differences. In the cross-border cooperation, how to explain the impact of culture on economic cooperation, how to reduce the cultural differences between countries, improving the efficiency of cross-border economic cooperation, which is this study wants to answer.First, the author in theory to answer how dose culture influence economic cooperation activities between countries?To solve this problem, I spent theory of transaction costs and theory of consumer behavior.In theory, this article trying to answer how dose culture produces less impact on the economic cooperation between the two countries. The way that I used to explain the impact of cultural differences on economic cooperation is culture---transaction costs--economic Cooperation, efforts to sort out the relationship between culture and transaction costs, and then explain the mechanism of transaction costs that affect economic cooperation, explain the relevance between culture and international economic cooperation. Transaction cost theory emphasizes cultural traditions, structure, trading levels, geographical and other factors that constitute the major factor in transaction costs. When both side make a transaction, because of the information asymmetry and the differences between factors, resulting in the generation of transaction costs. If the transaction costs can be controlled,the cooperation of two countries will belong to the win-win area. the transaction cost much bigger,the win-win cooperation area will be much smaller,and when the transaction cost reach a certain level, the win- win area will disappear, the transaction is over. So, transaction costs explained that the cooperation between two countries is affected by cultural differences, the cultural differences index is higher, the transaction costs will be higher. The smaller Cultural Differences is, the higher cooperative effect index will be. In addition, I founded that the theory of consumer behavior can be used to illustrate the impact of culture on international economic cooperation. The theory that this study use to explain the relationship among culture and the entry mode of multinational firms is the consumer buying behavior theory (especially the import and export of cultural products). according to the means-end-chain theory of the consumer behavior theory, consumers buy any product not because of the properties of this product itself but because this product can satisfy consumer’s expectations. So, consumer buying behavior is not determined by the attributes of the product, but it is determined by their culture values.Consumption activities are determined by personal values, the values of consumers will effect product attributes by feedback. This effect is a principle of mutual influence recursive manner. So, transnational supply activities need to base on purchase behavior of consumers to make the selection of the market.Thus, cultural differences is smaller, the culture values of cross-boder consumers is also smaller, consumer buying behavior are common.In order to prove the reliability theory, we use the methods of empirical research. We select Vietnam as the actual study, select the measurement index that include culture index and international economic cooperation index.The measurement indexs of Viet Nam’s culture are international migration,religious,cultural distance,geographical distance.The indicators of international economic cooperation are FDI in Vietnam and Vietnam’s import and export trade, the model of this study is verified by the gravity model and the method of LSD V. The predicted results of this model accord well with the theoretical basis of this paper. Combined with the results of empirical research and theoretical research, this paper founded that cultural factors play a very important role in cross-border economic cooperation.The farther the cultural distance and the geographical distance, the less cooperation.Different countries have their own cultural characteristics, and this different cultural characteristics will affect the foreign economic activities. Cultural differences can be reduced through communication that is based on multi-party cooperation include government,usinesses, employees of host country and home country.The main innovation of this paper lies in the previous of culture, cultural distance, cultural model were summarized research system and the evaluation,systematically study the relationship between culture and international economic cooperation, through the transaction cost theory and consumer behavior choice to open culture and the economy between the black box, establishing a process of cultural impact on the economy, and then use empirical analysis to verify this process.this paper founded that Vietnam’s international economic cooperation has been influenced by Vietnamese cultural characteristics such as:ultural distance, religion, immigration.