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Southern Economic Journal
Article . 2005 . Peer-reviewed
License: Wiley Online Library User Agreement
Data sources: Crossref
Southern Economic Journal
Article . 2005 . Peer-reviewed
Data sources: Crossref
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"Linguistic Distance" as a Determinant of Bilateral Trade

Authors: William K. Hutchinson;

"Linguistic Distance" as a Determinant of Bilateral Trade

Abstract

We introduce a measure of language difficulty called “linguistic distance” into a modified gravity model to determine whether a language being further away from English affects the level of trade. Our sample of 36 non‐English‐speaking countries includes Japan and South Korea, which we argue are special cases because of World War II, the Korean War, and subsequent close political and economic ties with the United States. Presence of a stock of immigrants in the home country has been shown to enhance trade with the country of origin. Controlling for immigrant network and information attributes, the special relationship with Japan and Korea, and the standard gravity model variables, we find that trade will be less between the United States and a country the further that country's language is from English. These results hold for aggregate exports and imports and for exports and imports of consumer and producer manufactures.

Related Organizations
Keywords

Trade, information costs, immigration, gravity, jel: jel:J1, jel: jel:F1

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    67
    popularity
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    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
67
Top 10%
Top 10%
Average
bronze