INTEGRATION OF INSTITUTIONAL ECONOMICS AND CROSS-CULTURAL STUDIES IN THE ANALYSIS OF INTERNATIONAL ECONOMIC INTERACTION

Abstract

Against the backdrop of deepening globalization, the digitalization of international business and the increasing intensity of cross-border economic interaction, research into intercultural communication as a factor in building trust and reducing transaction costs is becoming particularly relevant. Cultural differences between economic agents influence the quality of communication, the level of uncertainty, the effectiveness of negotiation processes, and the outcomes of international cooperation. At the same time, in modern economic science, the mechanisms for integrating intercultural factors into models of transaction costs and the quantitative assessment of their impact on the economic efficiency of international operations remain insufficiently researched. This study aims to summarize theoretical and methodological approaches to the analysis of intercultural communication in the international economy, to identify its role in building trust and reducing transaction costs, and to develop a conceptual framework for empirical research into these interrelationships. Based on a systematic analysis of academic sources, it has been established that intercultural communication acts as an important institutional mechanism for coordinating economic activity, which helps to reduce information asymmetry, limit opportunistic behavior, and increase the predictability of interaction between international partners. It has been demonstrated that the conceptual foundation of the study is formed by the provisions of R. Coase’s theory of the firm, O. Williamson’s theory of transaction costs, D. North’s institutional theory, and G. Hofstede’s cross-cultural model. It is argued that trust functions as a hybrid institution that combines formal and informal mechanisms for regulating economic relations and acts as a mediator of the influence of intercultural communication on transaction costs. A system of scientific hypotheses regarding the interrelationship between the level of intercultural communication, trust, cultural distance and transaction costs is proposed. An approach to the operationalization of the key variables of the study has been developed, and a basic econometric model is proposed for the empirical testing of the formulated hypotheses. The findings of the study confirm the validity of treating intercultural communication as an independent institutional factor in the international economy, one that influences the development of trust and the level of transaction costs at the micro-, meso- and macroeconomic levels. It has been established that effective intercultural communication helps to reduce cultural distance, improve the quality of economic interaction and build long-term competitive advantages. The proposed theoretical propositions and methodological tools can be used for further empirical research into international economic relations, assessing the impact of intercultural factors on economic efficiency, and developing practical mechanisms for improving international cooperation.