Journal
JOURNAL OF INTERNATIONAL BUSINESS STUDIES
Volume 37, Issue 5, Pages 578-602Publisher
PALGRAVE MACMILLAN LTD
DOI: 10.1057/palgrave.jibs.8400221
Keywords
psychic distance; cultural distance; trade flows; market selection
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This paper develops and tests a range of potential psychic distance stimuli including differences in culture, language, religion, education, and political systems. Using trade flows among a set of 38 nations as the dependent variable, it is shown that, whereas the majority of the proposed indicators prove to be statistically significant predictors of trade flows, the most common psychic distance surrogate-a composite measure of Hofstede's cultural dimensions-is not significant.
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