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Language and consumption

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  • Wang, Haining
  • Cheng, Zhiming
  • Smyth, Russell

Abstract

We examine the relationship between proficiency in Mandarin and consumption in China. We find that proficiency in Mandarin has a positive effect on an individual's total consumption expenditure as well as most categories of consumption expenditure. We also find considerable heterogeneity in the effects of Mandarin proficiency on consumption across subsamples. In addition, we find that proficiency in Mandarin has a positive effect on relative consumption, irrespective of the manner in which the reference group is defined. Our results have important policy implications for debates on the promotion of a national language and, in particular, recent debate about the promotion of speaking Mandarin in China.

Suggested Citation

  • Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2016. "Language and consumption," China Economic Review, Elsevier, vol. 40(C), pages 135-151.
    • Handle: RePEc:eee:chieco:v:40:y:2016:i:c:p:135-151
    DOI: 10.1016/j.chieco.2016.06.009
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    9. Zhang, Jiaping & Zhang, Huirong & Gong, Xiaomei, 2022. "Mobile payment and rural household consumption: Evidence from China," Telecommunications Policy, Elsevier, vol. 46(3).
    10. Cheng, Zhiming & Tani, Massimiliano & Wang, Haining, 2021. "Energy poverty and entrepreneurship," Energy Economics, Elsevier, vol. 102(C).
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    12. Fujii, Tomoki & Nakajima, Maki & Xu, Sijia, 2021. "Teaching in the Right Context: Textbook Supply Program, Language, and Vocabulary Ability in Vietnam," Economics and Statistics Working Papers 2-2021, Singapore Management University, School of Economics.
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    More about this item

    Keywords

    Mandarin proficiency; Consumption; Human capital; China;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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