How Do Cultural Differences Affect Trade Reciprocity between Developed and Developing Countries?

Abstract

Cultural distance in this Brief refers to the gap between development narratives promoted from the developed world—from experts, policymakers, and international organizations—versus political-economy practices in the developing world. The cultural distance analyzed here focuses on paternalistic factors in advanced countries contributing to trade barriers facing developing countries. Gradual moves toward reciprocal rather than discriminatory preferential access, as well as export diversification, can benefit the developing world.