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


  • Rongxing Guo


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 .

Suggested Citation

  • Rongxing Guo, 2007. "Linguistic and Religious Influences on Foreign Trade: Evidence from East Asia ," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 101-121, March.
  • Handle: RePEc:bla:asiaec:v:21:y:2007:i:1:p:101-121

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    References listed on IDEAS

    1. Glenn Jenkins & Chun-Yan Kuo, 2000. "Promoting Export–Oriented Foreign Direct Investment in Developing Countries: Tax and Customs Issues," Development Discussion Papers 2000-03, JDI Executive Programs.
    2. Ya-Hwei Yang, 1993. "Government Policy and Strategic Industries: The Case of Taiwan," NBER Chapters,in: Trade and Protectionism, NBER-EASE Volume 2, pages 387-411 National Bureau of Economic Research, Inc.
    3. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
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    Cited by:

    1. Edward M Feasel & Nobuyuki Kanazawa, 2013. "Sentiment toward Trading Partners and International Trade," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(3), pages 309-327.
    2. repec:spr:chfecr:v:4:y:2015:i:1:d:10.1186_s40589-015-0025-4 is not listed on IDEAS
    3. Taedong Lee & Susan Meene, 2012. "Who teaches and who learns? Policy learning through the C40 cities climate network," Policy Sciences, Springer;Society of Policy Sciences, vol. 45(3), pages 199-220, September.

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