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The Language Effect in International Trade: A Meta-Analysis

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  • Peter Egger
  • Andrea Lassmann

Abstract

Gravity models of international trade have been frequently applied to estimate the impact of common (official or spoken) language on bilateral trade. This study provides a meta-analysis based on 701 language effects collected from 81 academic articles. On average, a common (official or spoken) language increases trade flows directly by 44%.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-12/cesifo1_wp3682.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3682.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3682

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Keywords: common language; gravity; international trade; trade costs;

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  1. Jacques Melitz & Farid Toubal, 2012. "Native language, spoken language, translation and trade," Heriot-Watt University Economics Discussion Papers 1211, Department of Economics, School of Management and Languages, Heriot Watt University.
  2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics.
  3. Mélitz, Jacques, 2002. "Language and Foreign Trade," CEPR Discussion Papers 3590, C.E.P.R. Discussion Papers.
  4. Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
  5. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
  6. Saxonhouse, Gary R, 1976. "Estimated Parameters as Dependent Variables," American Economic Review, American Economic Association, vol. 66(1), pages 178-83, March.
  7. Peter Egger, 2008. "On the Role of Distance for Bilateral Trade," The World Economy, Wiley Blackwell, vol. 31(5), pages 653-662, 05.
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