Reasearch On The Impact Of Cultural Distance On The Dual Margin Of Export

Culture has increasingly become a key factor affecting the development of a country's trade,and the impact of cultural differences on exports cannot be ignored.The study of global trade has gradually expanded from previous factors,such as geographical location,economic development,to culture and national institutions.The dual margin of export can directly measure the country's foreign trade growth direction in economic globalization.Therefore,this paper will use cultural distance to measure the cultural differences between countries,and then analyze the influence of cultural distance on the dual margin of export.Based on the extended gravitation model,this paper selects 44 countries from all over the world as research objects,drawing on the research results of Nicolas Maystre to construct cultural distance indicators.Eventually,we choose data which includes inter-country export trade data in 1995-2016 and the World Values Survey 5(WVS Wave5)to explore the influence of cultural distance on total export trade,intensive margin and extensive margin.In the process of research,two time periods were selected for robustness test.We grouped two kinds of countries' s data regression analysis depending on the economic development levels.The results reveal that:(1)Cultural distance has a significant hindrance on a country's total export trade.(2)There is a significant negative correlation between cultural distance and export intensive margin.This means that the larger cultural distance,the smaller intensive margin.On the contrary,the influence of cultural distance on the extensive margin is weak.(3)The influence of cultural distance on the dual margin of exports is related to the level of national economic development.The export in developed countries(regions)is positively affected by cultural distance,while the export in developing countries(regions)is negatively affected by cultural distance.According to the results,this paper proposes relevant policy recommendations from two levels.(1)Country level: China should increase their cultural identity with trading partners,strengthen trade exchanges,eliminate the barrier that brings from culture distance and improve the internationalization of products.They also should take differentiated export strategies to countries with different cultural distances and give full play to the advantages of their own products.(2)Enterprises level: Export enterprises should increase investment in innovation technologies,improve export efficiency to increase intensive margin,optimize exportlinkages to increase extensive margin,and promote balanced development of the dual margin of exports.