Homogenization and Specialization Effects of International Trade: Are Cultural Goods Exceptional?

SummaryIn contrast to the logic that international trade leads to greater specialization and differentiation of products, cultural industries are often still protected from imports, in part, because of the worry that trade will lead instead to homogenization. Is this true for cultural goods and if so, is this different from other goods? I consider the effects of homogenization on industrial development, propose a network-based method of identifying homogenization in global trade patterns, and test a range of industries. I find evidence of homogenization in many industries, calling into question a major justification for free trade.