The Relatedness between National Distance and International Trade-Examples of Trade Relationship between Taiwan and Major Trading Countries.

• Main Authors: Jhuo- Syun Liang, 梁卓勛
• Other Authors: Chin-.Jung Luan
• Format: Others
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/vnr33f

碩士 === 國立東華大學 === 管理學院高階經營管理碩士在職專班 === 104 === Taiwan is a trade-oriented country, and firms of Taiwan have performed well in the past decades. In previous research, distance between countries has been argued to be able to impede trade, including import and export. With the trends of internationalization, globalization and regional integration of the world trades, the se distances may not be barriers owing to firms’ flexibility to allocate resources and operations all over the world. The purpose of the study is to investigate the roles of the distances between countries, including distances of culture, administration, geography, and economics (CAGE), playing in trades between them. Employing the trade statistics between the Taiwan and Taiwan’s major trading countries of Europe, Asia and America during 2010 and 2014, controlling the numbers of population and GDP per capita, the results show that cultural difference is significantly positively related to the trade between Taiwan and the trading counterpart. That is, the hypothesis is not supported. However, the hypothesis that geographical distance is negatively related to the trade volume between Taiwan and counterpart is supported by the empirical results. The paper can offer implications of distances for firms to internationalize their operations and we also highlight the importance of firm-level cultural distance to the future study of the research stream. Keywords- CAGE, international trade, national culture