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Linguistic and Religious Influences on Foreign Trade: Evidence from East Asia

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  • Rongxing Guo

Abstract

Using a modified gravity model and the cross-sectional data of East Asian economies, the present paper presents evidence that supports the view that the effect of distance-related transaction costs on trade tends to fall over time. Overall religious influence on foreign trade exists in the post-Cold War period but not during the Cold War period. The effects of language on inter-regional trade and of religion on intra-regional trade both weaken over time. In all cases, religion tends to have more significant influences on intra-regional trade than language, and language tends to exert more significant influences on inter-regional trade than religion. Finally, from 1985 to 1995 there is an indication that: (i) English becomes more important for inter-regional trade; (ii) Bahasa, English and Khmer become less important for intra-regional trade; and (iii) Chinese plays an increasing role in both intra-regional and inter-regional trade. Copyright 2007 The Author Journal compilation 2007 East Asian Economic Association and Blackwell Publishing Ltd .

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Bibliographic Info

Article provided by East Asian Economic Association in its journal Asian Economic Journal.

Volume (Year): 21 (2007)
Issue (Month): 1 (03)
Pages: 101-121

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Handle: RePEc:bla:asiaec:v:21:y:2007:i:1:p:101-121

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Cited by:
  1. Taedong Lee & Susan Meene, 2012. "Who teaches and who learns? Policy learning through the C40 cities climate network," Policy Sciences, Springer, vol. 45(3), pages 199-220, September.
  2. Edward M Feasel & Nobuyuki Kanazawa, 2013. "Sentiment toward Trading Partners and International Trade," Eastern Economic Journal, Palgrave Macmillan, vol. 39(3), pages 309-327.

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