The Impact of Cultural Differences between Countries on International Trade: Based on the Mediating Effect of Cultural Goods Trade

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Purpose Culture is composed of various elements such as language, religion, tradition, norms, values, and lifestyle of members of society. Many researchers have studied the impact of culture on trade in various ways. However, there are no studies on the effect that culture promotes cultural goods trade and increases trade as a mediator of cultural goods trade. Therefore, this paper intends to find out the impact of culture on cultural goods trade and the impact of culture on trade as a mediating role of cultural goods trade. Design/Methodology/Approach Using the mediating effect model, it analyzed the direct, indirect, and total effects of cultural differences between countries on trade. It empirically analyzed the size, direction, and effect of culture on trade volume mediating cultural goods trade. Findings As a result, it was not different from studies in advance. GDP per capita had a significant negative effect on trade, but it was found to have a significant positive effect on cultural goods trade. RTA has a significant effect on trade, but it was not statistically significant that the mediating effect of RTA on trade. All variables were analyzed to have a mediating effect except for RTA. Research Implications It is implied that the people of countries with high GDP per capita are more interested in world culture, which promotes trade in cultural goods. It suggests that interest or preference for cultural goods is not mainly local like RTA, but global. Therefore, Korea needs to research and develop cultural goods to spread exports around the world and create synergies that lead to the export of other products.