Trade Openness and Cultural Creative Destruction

This paper empirically analyzes the net effect of trade openness on ‘economic culture,’ measured by indicators of trust, respect, level of self-determination, and obedience.

This paper empirically analyzes the net effect of trade openness on ‘economic culture,’ measured by indicators of trust, respect, level of self-determination, and obedience. Openness to international trade means that societies are more likely to be exposed to alternative attitudes, beliefs, ideas, and values leading to a Schumpeterian process of creative destruction whereby culture is destroyed on some margins and enhanced on others.

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