Same Same But Different: Dialects and Trade

Alfred Lameli (), Volker Nitsch, Jens Suedekum and Nikolaus Wolf
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Alfred Lameli: University of Marburg

No 7397, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: language; culture; trade costs; gravity; dialects (search for similar items in EconPapers)
JEL-codes: F14 F15 Z10 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013-05
New Economics Papers: this item is included in nep-cul, nep-eur and nep-int
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Citations: View citations in EconPapers (5)

Published - published in: German Economic Review, 2015, 16 (3), 290-306

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Related works:
Journal Article: Same Same But Different: Dialects and Trade (2015)
Journal Article: Same Same But Different: Dialects and Trade (2015)
Working Paper: Same Same But Different: Dialects and Trade (2015)
Working Paper: Same Same But Different: Dialects and Trade (2013)
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