Investigating the effect of geographical distances and cultural proximity on the Hungarian wine trade

Wine is a very special product from an economic, cultural, and sociological point of view. Wine culture and wine trade play an important role in Hungary. The effect of cultural and geographical proximity on international trade has already been proven in the international trade literature. The size of bilateral trade flows between any two countries can be approximated by the gravity theory of trade. The gravity model provides empirical evidence of the relationship between the size of the economies, the distances between them, and their trade. This paper seeks to analyse the effect of cultural and geographical proximity on Hungary’s bilateral wine trade between 2000 and 2012, employing the gravity equation. The analysis is based on data from the World Bank WITS, WDI, as well as CEPII, and WTO databases. I apply OLS, Random Effects, Poisson, Pseudo-Poisson-Maximum-Likelihood and Heckman two stage estimators to calculate the gravity regression. The results show that in the case of Hungary, cultural similarity and trade liberalisation have a positive impact, while geographical distance, landlockedness, and contiguity have a negative impact on Hungarian wine exports.

A földrajzi távolság, a kulturális hasonlóság és a szabadkereskedelem hatása a borkereskedelemre = Effects on the global wine trade of geographical distance, cultural and linguistic similarity, and free trade

A globalizálódó világgazdaságban a vezető bortermelő országok egyre jelentősebb borkereskedelmet bonyolítanak le egymás között. Míg Európában a fogyasztók egyre kevesebb bort vásárolnak, addig Amerikában és Ázsiában a bor iránti kereslet folyamatosan bővül: a borkereskedelem földrajzi átrendeződése zajlik. A kulturális hasonlóság és a földrajzi távolság kereskedelemre gyakorolt hatását gyakran a kereskedelemelméletek gravitációs modelljével elemzik. E tanulmány azt vizsgálja, hogy a fő borexportáló országok közötti földrajzi távolság, kulturális hasonlóság és szabadkereskedelem milyen hatással van a nemzetközi borkereskedelemre, annak költségeire. A regressziós becslés eredményei alátámasztják, hogy a borkereskedelem költségei alacsonyabbak, ha a kereskedelmi partnerek kulturálisan hasonlók, földrajzilag közel helyezkednek el egymáshoz, vagy van tengeri kikötőjük, tagjai a WTO-nak, illetve ha kötöttek egymással regionális kereskedelmi megállapodást. Ezenkívül megállapítható, hogy az angolszász, a latin-amerikai és az európai kulturális klaszterek elsősorban egymással kereskednek. A kutatás számos kulturális változó alkalmazásával és több ökonometriai modell, illetve becslési eljárás nagymintás tesztelésével gazdagítja a szakirodalmat. ____ In a globalizing world, major wine-producing countries export considerable quantities to the global wine market and turn over a notable trade, but in what happens European wine regions differ markedly from the New World. Here major wine producers suffered a remarkable fall in domestic wine consumption in recent decades, while New World wine producers increased their production potential and generated new foreign demand. The changes have been joined by geographical relocation of wine consumption and exports. The gravity equation can be derived from demand-side or supply-side theory-consistent estimation methods that suggest relationships between the size of the economies, geographical distances, cultural similarities, and size of their trade. The paper analyses the effects of cultural and geographical proximity, free trade, and linguistic similarity on bilateral trade in the main wine-producing countries, using a cross-section gravity model for 2012. The results suggest that larger countries export more wine, while transport costs rise in line with geographical distance and are higher for landlocked trading partners. Wine export costs are lower if trading partners are culturally similar, share a dominant religion, or are both WTO members with regional trade agreements. Anglo-Saxon, Germanic, Latin American and Latin European countries mainly trade wines within their groups. The paper looks to extend the number of trading partners, investigate the effect of language clusters, and confirm that the results are robust by different econometric methodologies.

A Consumption-Based Approach to Carbon Emission Accounting – Sectoral Differences and Environmental Benefits

In recent years there has been growing concern about the emission trade balances of countries. This is due to the fact that countries with an open economy are active players in international trade. Trade is not only a major factor in forging a country’s economic structure, but contributes to the movement of embodied emissions beyond country borders. This issue is especially relevant from the carbon accounting policy and domestic production perspective, as it is known that the production-based principle is employed in the Kyoto agreement. The research described herein was designed to reveal the interdependence of countries on international trade and the corresponding embodied emissions both on national and on sectoral level and to illustrate the significance of the consumption-based emission accounting. It is presented here to what extent a consumption-based accounting would change the present system based on production-based accounting and allocation. The relationship of CO2 emission embodied in exports and embodied in imports is analysed here. International trade can blur the responsibility for the ecological effects of production and consumption and it can lengthen the link between consumption and its consequences. Input-output models are used in the methodology as they provide an appropriate framework for climate change accounting. The analysis comprises an international comparative study of four European countries (Germany, the United Kingdom, the Netherlands, and Hungary) with extended trading activities and carbon emissions. Moving from a production-based approach in climate policy to a consumption-based principle and allocation approach would help to increase the efficiency of emission reductions and would force countries to rethink their trading activities in order to decrease the environmental load of production activities. The results of this study show that it is important to distinguish between the two emission accounting approaches, both on the global and the local level.

A hazai kis- és közepes vállalatok szociokulturális beállítódása a hofstede-dimenziók mentén = The socio-cultural attitudes of the Hungarianc small and medium enterprises along the Hofstede dimensions

A kis- és közepes vállalkozások (KKV-k) kutatása viszonylag új, és emiatt meglehetősen feltáratlan terület, bár a megjelenő tudományos cikkek és eredmények száma és minősége évről évre jól érzékelhetően nő (Collinson – Shaw, 2001). A KKV-kutatások igen fontos sajátossága továbbá, hogy kifejezetten interdiszciplináris terület, megközelíthető a menedzsment, az innovációkutatás, a marketing, a szervezetszociológia, de akár a pszichológia felől is. Több kutatás is felveti a szociokulturális háttér jelentőségének kérdését KKV-k esetében. A szerzők kutatásuk során kvantitatív felmérést végeztek 200 vállalkozó körében a Hofstedeskála (Hofmeister et al., 2008) felhasználásával, melynek eredményeként kiderült, hogy a KKV-vezetők beállítódása jelentősen különbözik mind a hazai nagyvállalati vezetőktől, mind az általános lakosságtól. Jelen tanulmányunkban bemutatjuk azokat a Hofstede-dimenziókat, amelyek mentén karakteres különbségek jelentkeztek a vállalkozók és a nagyvállalati vezetők, valamint a társadalom összessége között. Az eredmények alapján határozottan kirajzolódnak olyan „vállalkozói” gondolkodásmódbeli sajátosságok, mint a nagyobb versenyszellem, a közvetlenebb, kevésbé hierarchikus működési stílus, a rendkívül erős, rövid távú orientáció, valamint a kockázatvállalás rendhagyóan alacsony foka. _____ Although there has been an increasing academic attention towards small and medium-sized enterprises, it is still a novel research area with a number of unanswered questions. It is also an especially interdisciplinary field as it can be approached from various viewpoints such as management, innovation, marketing, organization sociology or even psychology. Different academic disciplines have studied the influence of socio-cultural factors and concluded that they are relevant aspects of entrepreneurial activity. This paper presents the results of the authors’ quantitative research which aimed at finding patterns in the software of the minds of SME managers where they applied Hofstede’s cultural scale (Hofmeister et al., 2008). Drawing upon data from 200 Hungarian SMEs, the results indicate they have different attitude and way of thinking compared to large company managers and to the general Hungarian population. This paper points out the relevant Hofstede dimensions where significant differences have been revealed. The main finding of the study is that managers of small and medium businesses have a special mindset which can be characterized with higher level competitiveness, more direct and less hierarchic operation, extremely high level of short term orientation and low level of risk taking

Comparison of Explicit and Implicit Methods of Cross-Cultural Learning in an International Classroom

The paper addresses a gap in the literature concerning the difference between enhanced and not enhanced cross-cultural learning in an international classroom. The objective of the described research was to clarify if the environment of international classrooms could enhance cross-cultural competences significantly enough or if additional focus on cross-cultural learning as an explicit objective of learning activities would add substantially to the experience. The research question was defined as “how can a specific exercise focused on cross-cultural learning enhance the cross-cultural skills of university students in an international classroom?”. Surveys were conducted among interna- tional students in three leading Central-European Universities in Lithuania, Poland and Hungary to measure the increase of their cross-cultural competences. The Lithuanian and Polish classes were composed of international students and concentrated on International Management/Business topics (explicit method). The Hungarian survey was done in a general business class that just happened to be international in its composition (implicit method). Overall, our findings prove that the implicit method resulted in comparable, somewhat even stronger effectiveness than the explicit method. The study method included the analyses of students’ individual increases in each study dimension and construction of a compound measure to note the overall results. Our findings confirm the power of the international classroom as a stimulating environment for latent cross-cultural learning even without specific exercises focused on cross-cultural learning itself. However, the specific exercise did induce additional learning, especially related to cross-cultural awareness and communication with representatives of other cultures, even though the extent of that learning may be interpreted as underwhelming. The main conclusion from the study is that the diversity of the students engaged in a project provided an environment that supported cross-cultural learning, even without specific culture-focused reflections or exercises.