Dynamic co-movement between economic growth and language: A new perspective of technological progress

Cuiui Gang, Juanwei Li, Haiqing Hu and Wei Wei

International Review of Economics & Finance, 2023, vol. 85, issue C, 705-721

Abstract: To investigate whether language complexity has significant effects on technological progress and economic growth, this paper not only improves a concise endogenous growth model with open economy in which reducing the degree of official language complexity can help one country gain rapid technological progress and economic growth in balanced growth path, but also applies stochastic frontier analysis (SFA) and two-way fixed effect model to investigate our hypothesis. Using the database ethnologue distributed by Lewis et al. (2014) and the Penn World Table 9.1 about 89 countries and regions from 1990 to 2018, we consider the number of verb conjugations of official language to be the indicator of language complexity, and examine its effects on technological change and economic growth. The empirical findings demonstrate that reducing language complexity has a significant positive effect and time-lag influence on technological change and economic output. Meanwhile, the positive effect of linguistic complexity on technological progress and economic growth is stronger for these countries with isolating languages than those with other language families, as well as for middle and low-income countries than high-income countries. For developing countries and these countries with isolating and agglutinative languages, they are urged to simplify their native language and reform the second language learning institution in schools in order to achieve a high level of development.

Keywords: Language complexity; Technological progress; Economic growth; Stochastic frontier analysis (search for similar items in EconPapers)
JEL-codes: F43 O33 Z1 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056023000527
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:85:y:2023:i:c:p:705-721

DOI: 10.1016/j.iref.2023.02.014

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().