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Same Same But Different: Dialects and Trade

Lameli, Alfred ; Nitsch, Volker ; Südekum, Jens ; Wolf, Nikolaus (2015)
Same Same But Different: Dialects and Trade.
In: German Economic Review, 16 (3)
Article, Bibliographie

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 article we present the first analysis of the effect of language on trade in an intra-national context. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect have a significantly positive impact on regional trade. We interpret this finding as evidence for the trade-promoting effect of culture, because linguistic similarities likely reflect cultural ties across regions, rather than lower costs of communication or similar institutions.

Item Type: Article
Erschienen: 2015
Creators: Lameli, Alfred ; Nitsch, Volker ; Südekum, Jens ; Wolf, Nikolaus
Type of entry: Bibliographie
Title: Same Same But Different: Dialects and Trade
Language: English
Date: August 2015
Journal or Publication Title: German Economic Review
Volume of the journal: 16
Issue Number: 3
URL / URN: http://onlinelibrary.wiley.com/doi/10.1111/geer.12047/abstra...
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 article we present the first analysis of the effect of language on trade in an intra-national context. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect have a significantly positive impact on regional trade. We interpret this finding as evidence for the trade-promoting effect of culture, because linguistic similarities likely reflect cultural ties across regions, rather than lower costs of communication or similar institutions.

Uncontrolled Keywords: Language; culture; trade costs; gravity
Divisions: 01 Department of Law and Economics
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > International Economics
Date Deposited: 15 Dec 2015 12:28
Last Modified: 17 Nov 2021 08:06
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