Does cultural distance hinder the bilateral trade of cultural products? evidence from China

This study examines the impact of cultural distance on the bilateral trade of cultural products using a structural gravity model. We provide empirical evidence that cultural distance significantly hinders bilateral trade, while comparative advantage remains a crucial determinant, consistent with classical trade theory. In particular, the interaction between cultural distance and comparative advantage has a positive effect on bilateral trade when analyzed at the category level of cultural products. This finding suggests that the influence of comparative advantage strengthens as cultural distance increases. Additional analysis comparing East Asian and non–East Asian countries reveals that cultural distance has no significant effect among culturally similar countries, but plays a more pronounced role in shaping trade flows between culturally distant countries.