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Talking trade: language barriers in intra-Canadian commerce

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  • Nicolas Sauter

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Abstract

This paper tests for one mechanism that can explain the existence of a language barrier to trade. Specifically, I ask if those industries that require more cross-border communication in order to export their products trade more between Canadian provinces that know the other's language(s). I find that trade in industries with a need to communicate directly (orally) with importers increases with the probability that people in another province speak the same language. This finding can fill a missing link in the empirical trade literature, which lacked convincing arguments for the observed correlation between language commonality and the total volume of trade.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 42 (2012)
Issue (Month): 1 (February)
Pages: 301-323

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Handle: RePEc:spr:empeco:v:42:y:2012:i:1:p:301-323

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Related research

Keywords: Language; Trade costs; Gravity model; Canada;

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Cited by:
  1. Roberto Antonietti & Massimo Loi, 2014. "The demand for foreign languages in Italian manufacturing," Working Papers 57, AlmaLaurea Inter-University Consortium.
  2. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.
  3. Peter Egger & Andrea Lassmann, 2014. "Cultural Integration and Export Variety Overlap Across Countries," CESifo Working Paper Series 4800, CESifo Group Munich.
  4. Daria Ciriaci & Alessandro Muscio, 2011. "University choice, research quality and graduates' employability: Evidence from Italian national survey data," Working Papers 48, AlmaLaurea Inter-University Consortium.
  5. Silvio Rendon & Nuria Quella, 2009. "Occupational Selection in Multilingual Labor Markets: The Case of Catalonia," Department of Economics Working Papers 09-02, Stony Brook University, Department of Economics.

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