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Do language barriers affect trade?

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  • Lohmann, Johannes

Abstract

Language barriers may be more important to international trade than previously thought. The Language Barrier Index, a newly constructed variable that uses detailed linguistic data, is used to show that language barriers are significantly negatively correlated with bilateral trade.

Suggested Citation

  • Lohmann, Johannes, 2011. "Do language barriers affect trade?," Economics Letters, Elsevier, vol. 110(2), pages 159-162, February.
    • Handle: RePEc:eee:ecolet:v:110:y:2011:i:2:p:159-162
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    References listed on IDEAS

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    1. Glick, Reuven & Rose, Andrew K., 2002. "Does a currency union affect trade? The time-series evidence," European Economic Review, Elsevier, vol. 46(6), pages 1125-1151, June.
    2. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
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