A Behavioral Theory of Trade

We have proposed a two-sector two-country behavioral trade model to examine the effect of household’s creation intention on production, consumption and net export (import). Our theoretical framework predicts that countries with higher creativity intention are inclined to export creative goods, which is supported by our empirical evidence using gravity model with data from European Social Survey and other commonly-used international trade dataset. We also provide explanation for the worldwide intensity of trade conflict and deglobalization