nep-cul New Economics Papers
on Cultural Economics
Issue of 2013‒09‒13
two papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. An Empirical Study on International Trade in Cultural Goods (Japanese) By JINJI Naoto; TANAKA Ayumu
  2. A Cultural Clash View of the EU Crisis By Luigi Guiso; Helios Herrera; Massimo Morelli

  1. By: JINJI Naoto; TANAKA Ayumu
    Abstract: In this study, we overview the current situation of international trade in creative goods and investigate the determinants of trade in cultural goods. According to the statistical data provided by the United Nations, China is currently the world's largest exporter of creative goods and also sustains the world's largest trade surplus in creative goods. Although the United States is the second largest exporter of creative goods, it records the largest trade deficit in creative goods. Japan runs the second largest trade deficit in creative goods. We then analyze the determinants of trade in cultural goods by using the gravity model. We find that a ratification of the United Nations Educational, Scientific and Cultural Organization's (UNESCO) Convention on Cultural Diversity (CCD) is positively correlated with the volume of exports of cultural goods at a statistically significant level and that ratification of the CCD is also positively correlated with the volume of imports of cultural goods for World Trade Organization (WTO) members. We cannot find evidence that the CCD works as a trade barrier for cultural goods.
    Date: 2013–09
  2. By: Luigi Guiso (EIEF and CEPR); Helios Herrera (HEC Montréal); Massimo Morelli (Columbia University)
    Abstract: If voters of different countries adhere to different and deeply rooted cultural norms, when these countries interact their leaders may find it impossible to agree on efficient policies especially in hard times. Political leaders' actions are bound by a "conformity constraint" that requires them to express policies that do not violate these norms. This inhibits politicians from adopting the optimal policies as they may clash with either one or the other of the cultures of the interacting countries. We model this mechanism and argue that conformity constraints and cultural clash can help us understand the poor management of the Greek crisis and the resulting European Sovereign debt crisis. We show the conditions under which the introduction in Europe of a fiscal union can be obtained with consensus and be beneficial.Perhaps counter-intuitively, cultural diversity makes a fiscal union even more desirable.
    Date: 2013

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