This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of … cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 … countries in 1999, we find that institutional distance has a negative effect on bilateral trade, presumably because the …

of the presence of significant gravity effects of culture. The paper seeks to highlight three new research issues: (i … different immigrant groups; and (iii) the full culture-based development (CBD) mechanism of a joint cultural impact on the … EU15, comprising inter alia the World Value Survey and Eurostat Census data, initially explored by a multivariate …

glimpse into the values of people actually making trade decisions. I make use of a state-of-the-art PPML approach using data … on international trade flows together with intra-national trade flows (Yotov, 2012) and a comprehensive set of fixed … effect trade values differently over time, but their size and impact depends on the chosen measure of cultural distance and …