A Dissection of Trading Capital: Cultural persistence of trade in the aftermath of the fall of the Iron Curtain

Beestermöller, Matthias und Rauch, Ferdinand (11. September 2014): A Dissection of Trading Capital: Cultural persistence of trade in the aftermath of the fall of the Iron Curtain. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2014-46

Abstract

We show that the countries of the former Austro-Hungarian monarchy trade significantly more with one another in the aftermath of the collapse of the Iron Curtain than predicted by a standard gravity model. This trade surplus declines linearly and monotonically over time. We argue that these findings suggest that decaying cultural forces explain a significant part of trading capital. We document the rate of decay of these cultural forces.

• Dokumententyp: Paper
• Keywords: Trade, Gravity, Culture, Borders, Habsburg Empire, Persistence
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Munich Discussion Papers in Economics
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: F14, F15, N33, N34, N94
• Sprache: Englisch

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