The Impact of Cultural Proximity and Digital Dissimilarity on Cultural Trade

We differentiate between cultural proximity and digital dissimilarity indicators and study the volume of bilateral trade of cultural goods between European economies. The results show that economic sizes and the geographical distance explain a high degree of variance in the bilateral volume of trade. We show that cultural proximity influences the bilateral trade of cultural goods. Digital dissimilarity shows no significant effect on cultural trade, while the use of the Internet significantly increases the volume of trade of cultural goods. Cultural proximity remains relevant on the volume of the bilateral trade, which outweighs the effects from digital dissimilarity.

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