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Somatic distance, trust and trade
Author(s) -
Melitz Jacques,
Toubal Farid
Publication year - 2019
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12397
Subject(s) - conformity , robustness (evolution) , bilateral trade , economics , gravity model of trade , somatic cell , interpretation (philosophy) , sample (material) , gravity equation , econometrics , positive economics , social psychology , international trade , psychology , biology , political science , computer science , law , biochemistry , chemistry , chromatography , gene , china , programming language
Abstract Somatic distance, or differences in physical appearance, proves to be extremely important in the gravity model of bilateral trade in conformity with results in other areas of economics and outside in the social sciences. This is also true independently of survey evidence about bilateral trust. These findings are obtained in a sample of the 15 members of the European Economic Area in 1996. Robustness tests also show that somatic distance, as well as co‐ancestry, has a more reliable influence on bilateral trade than the other customary cultural variables. The article finally discusses the interpretation and breadth of application of these results.