Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/80675 
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Papers No. 7397
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Language is a strong and robust determinant of international trade patterns: Countries sharing a common language trade significantly more with each other than countries using different languages, holding other factors constant. In this paper, we show that this trade-promoting effect of language is likely to reflect cultural ties, rather than lower costs of communication or similar institutions. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect between regions have a sizable and significant positive impact on intra-national trade. We interpret this finding as evidence for the effect of culture on trade.
Subjects: 
language
culture
trade costs
gravity
dialects
JEL: 
F14
F15
Z10
Document Type: 
Working Paper

Files in This Item:
File
Size
394.94 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.