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Cultural Integration and Export Variety Overlap Across Countries

  • Peter Egger
  • Andrea Lassmann

This paper assesses the role of a larger degree of common language use between the populations of two countries on the so-called extensive product margin of trade. We focus on the overlap of products exported or imported between any pair of countries. The results suggest that the effect of varying aspects of sharing a common language on the variety overlap is both positive and important. The effect of sharing a common spoken language exceeds the one of common native language, implying that a larger overlap in language proficiency is quantitatively more important than a higher cultural proximity.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4800.

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Date of creation: 2014
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Handle: RePEc:ces:ceswps:_4800
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