Administrative distance
Administrative distances between home and host countries calculated using the Worldwide Governance Indicators (WGI) by the World Bank. This dataset contains 786 173 observations across 16 variables:
ID_o: character string indicating the home country (origin) and the year.
ID_d: character string indicating the host country (destination) and the year.
ID: character string indicating the countries forming each country pair (ISO3 code) and the year.
Measures of within-country diversity (religion and language)
Data on the measures of within-country religious and linguistic diversity for 120 countries. The dataset is a tibble containing 120 observations across 3 variables:
country_code: character string indicating the country (ISO3 code).
religious_diversity: Numeric. As reported in the article “The Effects of Within-Country Linguistic and Religious Diversity on Foreign Acquisitions” (JIBS, April 2016, v47-3: 319-346) two measures of within-country diversity were created using essentially the same data as was used to create the linguistic distance and religious distance scales (see documentation on psychic distance stimuli).
Foreign direct investments (FDI)
Data on bilateral FDI for 189 home countries and 186 host countries (6020 country pairs) from 2001 to 2012 based on UNCTAD data. This dataset contains 67 871 observations across 11 variables:
ID: character string indicating the country pair (ISO3 code) and the year.
ID_o: character string indicating the country of origin (ISO3 code) and the year.
ID_d: character string indicating the country of destination (ISO3 code) and the year.
Gravity controls
The gravity model is used in international economics to explain bilateral flows (such as trade) between two units (generally countries), based on the economic size of each unit (in terms of GDP or number of inhabitants) and the distance between these two units (in terms of geographic distance, for instance number of kilometers). Over time, several researchers have enhanced this model by adding a number of control variables, available in this dataset.
Cultural distance
Cultural distances between 78 home and 78 host countries (6084 country pairs) calculated using the Kogut & Singh (1988) index based on Hofstede’s (1980, 1988, 2010) cultural dimensions scores. This dataset contains 6084 observations across 5 variables:
country_pair: character string uniting the origin and the destination.
origin: character string indicating the first country (ISO3 code) of the country pair.
destination: character string indicating the second country (ISO3 code) of the country pair.
Economic integration agreements (EIA)
Data on economic integration agreements (EIA) between country pairs per year. This is not a binary indicator (0 for no agreement, 1 for an agreement between the countries of the country pair) but rather a multichotomous index in which:
- 0 represents the absence of economic integration agreement,
- 1 represents a one-way preferential trade agreement,
- 2 represents a two-way preferential trade agreement,
Psychic distance (Hakanson and Ambos, 2010)
Data on psychic distance aggregated at the country level for 625 country pairs (25 home countries and 25 host countries). The dataset contains 625 observations across 4 variables:
country_pair: character string uniting the origin and the destination.
origin: character string indicating the first country (ISO3 code) of the country pair.
destination: character string indicating the second country (ISO3 code) of the country pair.
Psychic distance stimuli (Dow & Karunaratna, 2006)
The psychic distance stimuli were developed by Dow and Karunaratna for their study originally presented at the Academy of International Business meeting of 2004 and subsequently published in the Journal of International Business Studies in 2006.
While the most widespread definition of psychic distance is “factors preventing or disturbing the flows of information between firm and market. Examples of such factors are differences in language, culture, political systems, level of education, level of industrial development, etc.
Economic distance
Economic distances between 259 home and 259 host countries (66 953 country pairs) calculated using the difference in GDP in USD for each year from 1960 to 2019 (World Bank data). This dataset is a tibble containing 2 663 653 observations across 8 variables:
ID: a character string indicating the country pair (ISO3 code) and the year.
ID_o: a character string indicating the home (origin) country and the year.