Do National Cultural Traits Affect Comparative Advantage in Cultural Goods

Trade in cultural goods is making an increasingly significant contribution to international trade, but its flows are very uneven across regions, which has raised concerns over cultural homogenization. This paper considers various aspects of national culture as possible explanations for comparative advantage in cultural goods. Using data from 98 countries over the period 2004 to 2014, and employing Hofstede’s multidimensional approach to culture, we test the relationship between the dimensions of national culture and comparative advantage in cultural goods. We find that the cultural dimensions of individualism, masculinity, long-term orientation, and indulgence are positively associated, whereas the cultural dimensions of power distance and uncertainty avoidance are negatively associated with comparative advantage in cultural goods.