
doi: 10.2139/ssrn.2411407
handle: 10419/93408
Cultural factors and especially common languages are well-known determinants of trade. By contrast, the knowledge of foreign languages was not explored in the literature so far. We combine traditional gravity models with data on fluency in the main languages used in EU and candidate countries. We show that widespread knowledge of languages is an important determinant for foreign trade, with English playing an especially important role. The robustness of our results is confirmed by a natural experiment of trade between Eastern and Western Europe.
gravity model, quantile regression, ddc:330, F15, gravity model, foreign trade, economics of languages, natural experiment, median regression, quantile regression, economics of languages, median regression, European integration; foreign trade; Gravity models; language; quantile regression, Z10, foreign trade, Gravity models; foreign trade; language effects; median regression; quantile regression, F40, C23, natural experiment, jel: jel:C23, jel: jel:F40, jel: jel:F15, jel: jel:Z10
gravity model, quantile regression, ddc:330, F15, gravity model, foreign trade, economics of languages, natural experiment, median regression, quantile regression, economics of languages, median regression, European integration; foreign trade; Gravity models; language; quantile regression, Z10, foreign trade, Gravity models; foreign trade; language effects; median regression; quantile regression, F40, C23, natural experiment, jel: jel:C23, jel: jel:F40, jel: jel:F15, jel: jel:Z10
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