THE IMPACT OF EASTERN EUROPEAN CULTURE ON THE INTERNATIONAL TRADE
THE IMPACT OF EASTERN EUROPEAN CULTURE ON THE INTERNATIONAL TRADE

Summary/Abstract: Business and economic decisions of individuals are influenced by cultural values. The current study investigates the impact of Eastern European culture on international trade. Well known Hofstede (1980) cultural dimensions are measured with unique proxies and their impact on the international trade (imports and exports) of Eastern European Countries (EEC) is analysed. Standalone and panel (fixed effect) regression models have been applied to the 20 years’ data (1996-2015) of three representative countries (Poland, Lithuania, and Romania). Overall power distance is decreasing while uncertainty avoidance is increasing in the Eastern European countries over the time. The results show that power distance has a significant negative relationship with both imports and exports while individualism has a significant positive relationship with the imports and exports of the EEC. Uncertainty avoidance and masculinity vs femininity dimensions have no significant impact on the international trade of the region. Findings of the study may help the policy makers to increase the international trade of these countries by focusing on the influence of particular cultural dimensions.

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