The Impact of Cultural Diversity on the Growth of China's Exports to the EU27
Abstract
This study takes China and the 27 EU member states as the research subjects. Based on panel data from 2000 to 2023 and within the framework of an extended gravity model, it uses Hofstede's six-dimensional cultural model and the Kogut Singh index to measure cultural diversity, systematically examining the impact of cultural diversity on the growth of China's export trade to the EU27. The findings show that cultural diversity significantly inhibits the growth of China's exports to the EU27: for each one unit increase in cultural distance, the logarithmic value of export value decreases by approximately 0.79 units. This conclusion remains robust after various robustness tests and after addressing endogeneity issues using instrumental variable methods. Heterogeneity analysis reveals that this inhibiting effect is more pronounced in countries with higher economic development levels, in Central and Eastern European countries, and in countries with larger population sizes – the inhibiting effect in high population countries is about 37 times that in low population countries. The results indicate that intra EU cultural differences are an important implicit constraint on the growth of China's export trade. Chinese export firms should abandon the perception of “EU homogeneity”, formulate differentiated market strategies based on the cultural characteristics of member states, and enhance their cross cultural adaptability.
How to Cite This Article
Guang Zhao Xing, Min Xiao (2026). The Impact of Cultural Diversity on the Growth of China's Exports to the EU27 . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 7(3), 210-218. DOI: https://doi.org/10.54660/.IJMRGE.2026.7.3.210-218