The Impact of Culture Distance on China’s Trade Exports to the 58 Countries along the “Belt and Road”

Abstract

Culture, as an informal system, has received extensive attention from scholars in international trade involving cross-cultural exchanges. Starting from Hofstede’s theory of the six dimensions of culture, this paper empirically verifies the impact of culture distance on China’s exports to the 58 countries along the “Belt and Road” by using the trade gravity model. The study finds that culture distance has a first inhibiting and then promoting “U” shape effect on China’s trade exports to countries along the “Belt and Road”, and that culture distance has a heterogeneous effect on China’s trade exports to countries in terms of the categories of products and the target countries’ income levels. In addition, culture interaction activities like Friendship Cities and Confucius Institutes can positively moderate the influence of culture distance on China’s trade export.