Does the Confucius Institute Network Impact Cultural Distance?: A Panel Data Analysis of Cross-Border Flows in and Out of China
Ghosh, Sucharita, Lien, Donald and Steven Yamarik, 2017, "Does the Confucius Institute Network Impact Cultural Distance? A Panel Data Analysis of Cross-Border Flows in and out of China," Asian Economic Journal, vol 31(3), pages 299-323.
Posted: 26 Aug 2018
Date Written: August 2018
This paper examines the impact of cultural distance in general and the Confucius Institute Network in particular on cross-border flows of tourists, goods and investment in and out of China. We estimate a panel gravity model of inbound and outbound flows between 2004 and 2012. We find that the presence of Confucius Institute(s) in the source country increases inbound tourism and equity flows and outbound export and FDI flows for China, while other measures of cultural distance have less of an impact.
Keywords: Confucius Institute, China, Culture, Tourism, International Trade, Foreign Investment, Portfolio Equity
JEL Classification: F14, F21, F22, L83, Z1
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