Same Same But Different: Dialects and Trade
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Alfred Lameli
Abstract
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 article we present the first analysis of the effect of language on trade in an intra-national context. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect have a significantly positive impact on regional trade. We interpret this finding as evidence for the trade-promoting effect of culture, because linguistic similarities likely reflect cultural ties across regions, rather than lower costs of communication or similar institutions.
© 2019 by Walter de Gruyter Berlin/Boston
Articles in the same Issue
- Don’t Tax Me? Determinants of Individual Attitudes Toward Progressive Taxation
- Same Same But Different: Dialects and Trade
- The Costs of Power Interruptions in Germany: A Regional and Sectoral Analysis
- Rating Agencies – An Experimental Analysis of Their Remuneration Model
- Intrinsic Motivations of Public Sector Employees: Evidence for Germany
- The Price Impact of Lending Relationships
Articles in the same Issue
- Don’t Tax Me? Determinants of Individual Attitudes Toward Progressive Taxation
- Same Same But Different: Dialects and Trade
- The Costs of Power Interruptions in Germany: A Regional and Sectoral Analysis
- Rating Agencies – An Experimental Analysis of Their Remuneration Model
- Intrinsic Motivations of Public Sector Employees: Evidence for Germany
- The Price Impact of Lending Relationships
