The Interactions Between Export And Productivity Of China's Services Firms

In the era of knowledge-driven economy,global culture industries are growing rapidly.Culture industries,especially core culture industries with rich and distinct cultural content have become new engine for economic growth.Among all of the culture industries,broadcasting industry has a tremendous growth.And South Korea has notable performance in broadcasting development.Since 1990s,South Korean broadcasting programs has become very popular across Asia.Its latest show“Men from the tars" in 2014 has a record high 2 billion clicks online.Now,South Korean broadcasting industry has become one of the most dynamic industries in its culture industries.Its exports experienced a steady growth over the last several decades.However,South Korean broadcasting exports concentrated in Asia countries.It doesn't cater to the needs of western audiences.Western media think it is mainly because of culture difference.Based on above analysis,this paper aims to study on whether cultural distance has impact on South Korean broadcasting exports.Based on data on trade between South Korea and other 18 trading partners from 2006 to 2012,this paper establishes a gravity to study on influence of cultural distance on South Korean broadcasting program exports.And 18 importers' GDP,per capita GDP,Internet users rate and distance are chosen as control variables in the model.The results show that cultural distance has a negative effect on South Korean broadcasting program exports on the whole.This can prove that cultural distance can indeed increase costs of South Korea broadcasting exports,such as searching costs.And it also means that cultural distance can directly reduce the demand of consumers in importing countries,which also reduces the trade volume.But each cultural dimension distance has different effects on South Korean broadcasting program exports.Some cultural dimension distances have positive impact on South Korea broadcasting export.This is may because some cultural dimension distances can bring more diversified products for consumers in importing countries,which greatly increases the consumption of South Korean broadcasting.This paper also demonstrates there are interaction effects between cultural circle/market size and cultural distance on South Korean broadcasting program exports.We find that cultural distance has a negative effect on South Korean broadcasting program exports in countries of Non-Confucian cultural circle.On the contrary,the effect is positive in countries of Confucian cultural circle.This means that modern packaging of South Korean broadcasting has attracted consumers in Confucian cultural circle.The test of the interactional effects of market size and cultural distance,however,reveals that South Korean broadcasting flow' s cultural discount was significantly moderated by the importer' s market size.At last,this paper presents some suggestions and recommendations for South Korean government and companies.South Korean companies should take full account of the cultural factors into its broadcasting exports and highlights its cultural advantages and try to avoid "cultural discount".Some suggestion are also made for Chinese companies in the hope to serve as some reference for these companies'development.