Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74505
Authors: 
Lameli, Alfred
Nitsch, Volker
Suedekum, Jens
Wolf, Nikolaus
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4245
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
JEL: 
F14
F15
Z10
Document Type: 
Working Paper

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