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Native language, spoken language, translation and trade

Jacques Melitz and Farid Toubal

No 8994, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We construct new series for common native language and common spoken language for 195 countries, which we use together with series for common official language and linguistic proximity in order to draw inferences about (1) the aggregate impact of all linguistic factors on bilateral trade, (2) whether the linguistic influences come from ethnicity and trust or ease of communication, and (3) in so far they come from ease of communication, to what extent translation and interpreters play a role. The results show that the impact of linguistic factors, all together, is at least twice as great as the usual dummy variable for common language, resting on official language, would say. In addition, ease of communication is far more important than ethnicity and trust. Further, so far as ease of communication is at work, translation and interpreters are extremely important. Finally, ethnicity and trust come into play largely because of immigrants and their influence is otherwise difficult to detect.

Keywords: Bilateral Trade; Gravity Models; Language (search for similar items in EconPapers)
JEL-codes: F10 F40 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Native language, spoken language, translation and trade (2014) Downloads
Working Paper: Native language, spoken language, translation and trade (2014)
Working Paper: Native language, spoken language, translation and trade (2014)
Working Paper: Native language, spoken language, translation and trade (2012) Downloads
Working Paper: Native Language, Spoken Language, Translation and Trade (2012) Downloads
Working Paper: Native language, spoken language, translation and trade (2012) Downloads
Working Paper: Native language, spoken language, translation and trade (2012) Downloads
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