Abstract
ABSTRACT Inspired by the psychology of creativity, we explore a new cause of trade with a behavioural trade model which predicts several trade patterns supported by new empirical evidence. The model examines the effects of human creative orientation on production, consumption, and trade patterns, thus shedding new light on the gains and losses from trade. It predicts that countries with higher levels of household creative orientation are more inclined to export creative goods. This prediction is supported by empirical evidence using a gravity model with data from the European Social Survey.
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