Cultural proximity and trade

Cultural Proximity and Loan Outcomes∗

We present evidence that cultural proximity (shared codes, beliefs, ethnicity) between lenders and borrowers increases the quantity of credit and reduces default. We identify in-group lending using dyadic data on religion and caste for officers and borrowers from an Indian bank, and a rotation policy that induces exogenous matching between them. Having an in-group officer increases credit acces...

Geographic Proximity, Trade and International Conflict/Cooperation

Geographic Proximity, Trade and International Conflict/Cooperation This paper examines the interactive effect of distance and trade on international conflict and cooperation. The effect of geographic distance depends on trade, while the effect of trade varies with geographic distance. Trade reduces conflict to a greater extent when dyads are geographically close, but has a greater effect on coo...

Liberalization of Trade in Cultural And

Service innovation and the proximity-concentration trade-off model of trade and FDI

This paper introduces service innovation in the proximity-concentration trade-off model of trade and FDI (Helpman, Melitz and Yeaple, 2004). The idea is that innovation will have two main effects on service firms’ choice between exports and FDI. First, innovative firms will on average have higher productivity levels than non-innovative enterprises. Secondly, innovators will have to pay a higher...

Judged Terror Risk and Proximity to the World Trade Center

In November 2001, a nationally representative sample of Americans (N = 973, ages 13–88), queried via WebTVs at home, judged the probability of five terror-related events (e.g., being injured in an attack) and three “routine” risks (e.g., being a victim of other violent crime), in the following 12 months. Judgments of terror risks, but not routine risks, were related to whether respondents were ...