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Talking Trade: Language Barriers in Intra-Canadian Commerce

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  • Nicolas Sauter

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

Paper provided by FIW in its series FIW Working Paper series with number 023.

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Length: 31
Date of creation: Jan 2009
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Handle: RePEc:wsr:wpaper:y:2009:i:023

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

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References

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Cited by:
  1. 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.
  2. Roberto Antonietti & Massimo Loi, 2014. "The demand for foreign languages in Italian manufacturing," Working Papers 57, AlmaLaurea Inter-University Consortium.
  3. Núria Quella & Silvio Rendon, 2012. "Occupational selection in multilingual labor markets: the case of Catalonia," International Journal of Manpower, Emerald Group Publishing, vol. 33(8), pages 918-937, July.
  4. Peter Egger & Andrea Lassmann, 2014. "Cultural Integration and Export Variety Overlap Across Countries," CESifo Working Paper Series 4800, CESifo Group Munich.
  5. 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.

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