The joint effects of information and communication technology development and intercultural miscommunication on international trade: Evidence from China and its trading partners

It is expected that advancements in communication technology can promote international trade by reducing transaction costs, improving efficiency, and moderating information asymmetry. Moreover, intercultural miscommunication caused by cultural differences generates costs from communication breakdowns during international trade. Using bilateral trade data from China and its major trading partners, this study not only provides further empirical evidence to support these claims but also examines the joint effect of those two factors on international trade, which have not been addressed in the literature. This study reveals the mixed results of the joint effects of intercultural miscommunication and the three factors of communication technology (access, use, and skills). More specifically, individualistic behaviours and masculine attitudes contribute the most to the negative effect on the relationship between international trade and communication technology access and use. In contrast, communication technology skills interact with intercultural miscommunication in different ways.