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Journal Articles Journal of International Economics Year : 2008

Globalization and the dynamics of cultural identity

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Abstract

This paper presents a simple model where micro-founded dynamics of cultural identity are endogenous and interact with an international trade equilibrium. This process generates a strong home bias under autarky. We then show that goods market integration causes a phenomenon of cultural divergence, whereby the distributions of cultures become more dissimilar across countries and one of the cultures that existed under autarky ultimately disappears. By way of contrast, we show that social integration causes cultural convergence and can counterbalance the effects of goods market integration.

Dates and versions

halshs-00754257 , version 1 (20-11-2012)

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Jacques Olivier, Mathias Thoenig, Thierry Verdier. Globalization and the dynamics of cultural identity. Journal of International Economics, 2008, 76 (2), pp.356-370. ⟨10.1016/j.jinteco.2008.06.009⟩. ⟨halshs-00754257⟩
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