Hofstede's cultural dimension theory has been perfected from the original four dimensions to the current six dimensions, and has received widespread attention from scholars. The Hofstede cultural dimension summarizes the cultural characteristics of countries or regions into six dimensions, and analyzes the survey data to obtain the score of each country or region in each dimension, with a score range of 0-100 33 . It is widely used in cross-cultural international trade, cultural exchanges, marketing, psychology and other fields. This paper cites Hofstede's six dimensions of culture as the theoretical basis for the study of cultural distance: power distance, uncertainty avoidance, individualism, masculinity, long-term orientation and indulgence.

Cultural distance can be calculated using the latest version of the cultural dimension index obtained from Hofstede's official website in 2015 and the Cultural Distance Index (CDI) formula constructed by Kogut and Singh.

The improved PPML (Poisson Pseudo Maximum Likelihood) model is as follows:?

?where Tij represents China’s Baijiu exports to country j, Yi and Yj represent the GDP of China and the importer country, GDij and CDij stand for the geographic distance and cultural distance between China and the sample country. Dummy varaiblies such as APEC membership, BRI membership, Common boarder are included in Zij. If the importer country have APEC/BRI membership or share common boarder with China, the value will be counted as one. Otherwise, the value would be zero.?

where Tij represents China’s Baijiu exports to country j, Yi and Yj represent the GDP of China and the importer country, GDij stands for the geographic distance between China and the sample country. PDIij refers to the distance between two countries on the power distance dimension, UAIij refers to the bilateral distance on 31 the uncertainty avoidance dimension, IDVij refers to the bilateral distance on the individualism dimension, MASij refers to the bilateral distance on the masculinity dimension, LTOij refers to the bilateral distance on the long term orientation dimension, and IVRij refers to the bilateral distance on the indulgence dimension. Dummy variables such as APEC membership, BRI membership, Common boarder are included in Zij . If the importer country have APEC/BRI membership or share common boarder with China, the value will be counted as one. Otherwise, the value would be zero.

Regression results

The author?selects 105 countries and regions for empirical study.

Conclusion

This chapter extends the nonlinear trade gravity model to include cultural distance, geographical distance, trade agreement and common boarder. Subsequently, the meaning of the variables and the samples and data sources were introduced in detail. Finally, the measurement results are presented in detail. From the regression results, it can be concluded that cultural distance has had significant negative effect on China’s Baijiu export, which is in line with the previous hypothesis and validates the validity of the theory. GDP of importer country has played a positive role in the export process. In addition, China's GDP did not have important impact on the export. Geographic distance has not had significant effect, which is different from expectation. APEC membership has had significant positive effect, reducing trade barriers and promoting imports and exports, while BRI is not significant. China’s Belt&Road Initialtive still has much space to be improved. Apart from that, common boarder also has had positive effect on the export. Among the six cultural dimension distance variables, distances in PDI and LTO played a significant negative role, distance in MAS has had significant positive effect on China’s Baijiu export, and the rest variables like distances in UAI, IDV and LVR did not have significant effect on the export of China’s Baijiu industry. Overall, the regression results meet expectations, verified the hypothesis, and provided an empirical research basis for the following recommendations