Same Same But Different: Dialects and Trade
Language is a strong and robust determinant of international trade patterns: Countries sharing a common language trade significantly more with each other than countries using different languages, holding other factors constant. In this paper, we show that this trade-promoting effect of language is likely to reflect cultural ties, rather than lower costs of communication or similar institutions. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect between regions have a sizable and significant positive impact on intra-national trade. We interpret this finding as evidence for the effect of culture on trade.
|Date of creation:||May 2013|
|Publication status:||published in: German Economic Review, 2015, 16 (3), 290-306|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Volker Nitsch & Nikolaus Wolf, 2013.
"Tear down this wall: on the persistence of borders in trade,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 46(1), pages 154-179, February.
- Nitsch, Volker & Wolf, Nikolaus, 2009. "Tear Down this Wall : On the Persistence of Borders in Trade," The Warwick Economics Research Paper Series (TWERPS) 919, University of Warwick, Department of Economics.
- Volker Nitsch & Nikolaus Wolf, 2009. "Tear Down this Wall: On the Persistence of Borders in Trade," CESifo Working Paper Series 2847, CESifo Group Munich.
- Nitsch, Volker & Wolf, Nikolaus, 2009. "Tear Down this Wall: On the Persistence of Borders in Trade," CEPR Discussion Papers 7545, C.E.P.R. Discussion Papers.
- Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 569-600.
- Nathan Nunn, 2005. "Relationship Specificity, Incomplete Contracts and the Pattern of Trade," International Trade 0512018, EconWPA.
- Nunn, Nathan, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," Scholarly Articles 4686801, Harvard University Department of Economics.
- Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.