The Impact of Cultural Distance on Bilateral Arm’s Length Exports An International Business Perspective

摘要

• Prior studies have argued and regularly found that cultural distance is negatively related to bilateral export flows, which are the sum of arm’s length and intra-firm exports. However, these macro-level studies overlook the firm-level insights that arm’s length exports are a substitute for arm’s length affiliate sales, and that firms’ choices between these substitutes are influenced by cultural distance.