The Eurovision Song Contest, Preferences and European Trade

Ari Kokko & Patrik Tingvall (2012)

Abstract
Already Beckerman (1956) and Linder (1961) suggested that international trade is not determined by supply side factors alone - perceptions about foreign countries and country preferences matter. We explore the relation between exports, cultural distance, income differences and country preferences as revealed by voting in the European Song Contest. We conclude that preferences influence trade through several channels, and that results of the European Song Contest are a robust predictor of bilateral trade.

 

JEL Classification: F14; F12

Keywords: International trade; Country preferences; Gravity model; The Eurovision Song Contest

 

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