Original scientific paper
https://doi.org/10.1080/1331677X.2020.1819849
The influence of cultural exchange on international trade: an empirical test of Confucius Institutes based on China and the ‘Belt and Road’ areas
Qing Li
Yonghui Han
Ziwen Li
Dongming Wei
Fan Zhang
Abstract
With the implementation of the Belt and Road initiative, the
development of trade governance between China and countries
along the line has expanded. Firstly, this paper analyzes the
impact of cultural exchanges through Confucius Institutes on
regional trade cooperation from three dimensions: improving cultural identity, reducing trade costs and sharing information.
Secondly, we utilise data trade data from the 64 countries along
the line from 2004 to 2015 to examine the effects of Confucius
Institutes in regional trade cooperation with China. Overall, we
found that Confucius Institutes have significantly promoted the
trade growth of China and those countries. Compared to exports,
Confucius Institutes promote greater growth imports to the Belt
and Road countries from China. Compared to countries in the
Road, Confucius Institutes better promoted trade growth between
China and countries in the Belt. This empirical conclusion stands
under various robustness tests. Forth, after the 12th five-yearplan, the promoting effects of the Confucius Institute has been
strengthening. Fifth, the smaller the cultural distance, the stronger
the promoting effects of the Confucius Institute on the trade in
BRI countries. However, the effect of language similarity is not significant. This study indicates that the Chinese government should
pay more attention to the economic effects of cultural factors,
such as the Confucius Institute, in policy design.
Keywords
Cultural exchange; international trade; Confucius Institute
Hrčak ID:
301201
URI
Publication date:
31.12.2021.
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