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Does the Confucius Institute Network Impact Cultural Distance? A Panel Data Analysis of Cross‐Border Flows in and out of China
Author(s) -
Ghosh Sucharita,
Lien Donald,
Yamarik Steven
Publication year - 2017
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12125
Subject(s) - china , tourism , gravity model of trade , equity (law) , panel data , geographical distance , foreign direct investment , economics , gravity equation , investment (military) , economic geography , international trade , bilateral trade , econometrics , geography , political science , sociology , macroeconomics , population , demography , archaeology , politics , law
This paper examines the impact of cultural distance in general and the Confucius Institute Network in particular on cross‐border flows of tourists, goods and investment in and out of China. We estimate a panel gravity model of inbound and outbound flows between 2004 and 2012. We find that the presence of Confucius Institute(s) in the source country increases inbound tourism and equity flows and outbound export and FDI flows for China, while other measures of cultural distance have less of an impact.