Bilateral trade of cultural goods

International trade flows of cultural goods have grown rapidly over the last decades and their liberalization will be an important issue of future multilateral trade negotiations. In this paper, we focus on bilateral trade in cultural goods and investigate its determinants. Furthermore, we use trade in cultural goods as a proxy for countries’ cultural proximity and study if countries with proximate cultural tastes have more intense bilateral exchanges. Our estimations show a positive and significant influence of cultural flows on overall trade, suggesting that regulations fostering domestic cultural creation might have impacts going beyond what is generally expected.

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