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Autoren: 
Sauter, Nicolas
Datum: 
2009
Schriftenreihe/Nr.: 
FIW Working Paper No. 23
Zusammenfassung: 
This paper tests for one mechanism that can explain the existence of a language barrier to trade. Specifically, I ask if those industries that require more cross-border communication in order to export their products trade more between Canadian provinces that know the other's language(s). I find that trade in industries with a need to communicate directly (orally) with importers increases with the probability that people in another province speak the same language. This finding can fill a missing link in the empirical trade literature, which lacked convincing arguments for the observed correlation between language commonality and the total volume of trade.
Schlagwörter: 
Language
Trade cost
Gravity model
Canada
JEL: 
F10
F15
F40
Dokumentart: 
Working Paper

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