Influence Of Cultural Distance On The Trade Volume Between China And ASEAN

Most of the traditional international trade studies are using population,geography and economic factors as the main research objects to examine their impact on international trade.However,with the development of the world economy and the advancement of science and technology,the hindrance of geographical factors to trade has gradually been resolved or mitigated through advanced transportation networks and transportation tools.In modern international economic and trade relations,culture and institutions have been established.The impact of other intangible factors on trade will increase.This paper firstly combines the previous research results at home and abroad,defines and measures the cultural distance,and analyzes the influence mechanism of cultural distance on trade volume based on transaction cost theory and consumer behavior theory.Secondly,ASEAN is selected as a sample country.Using the improved Kogut and Singh distance models,China-ASEAN cultural distance,institutional distance and economic distance are constructed.Then,using the panel data time-dimensional random effects model and spatial dubin(SDM)model,the indicators were analyzed separately,and the different results produced by the two models were interpreted rationally.Finally,it was found that geographical distance has little effect on trade volume,and economic distance and the direct investment between China and ASEAN have a certain linkage,while cultural distance,like geographical distance,has a spatial effect and will significantly negatively affect trade volume.