Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102258
Authors: 
Egger, Peter
Lassmann, Andrea
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4800
Abstract: 
This paper assesses the role of a larger degree of common language use between the populations of two countries on the so-called extensive product margin of trade. We focus on the overlap of products exported or imported between any pair of countries. The results suggest that the effect of varying aspects of sharing a common language on the variety overlap is both positive and important. The effect of sharing a common spoken language exceeds the one of common native language, implying that a larger overlap in language proficiency is quantitatively more important than a higher cultural proximity.
Subjects: 
common language
international trade
trade costs
cultural integration
JEL: 
C31
F14
F15
Z10
Document Type: 
Working Paper

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