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Language differences, cultural identity, and innovation

Author

Listed:
  • Chang'an Wang
  • Junqian Wu
  • Jianqing Ruan
  • Xiaoqian Liu

Abstract

Cultural variations caused by language differences hinder technology diffusion and economic development. Using China's city‐level data, we analyze the effect of language differences in cities on innovation. The result shows the larger the language differences within a city, the lower the innovation of that city. Then, using historical immigration data as an instrumental variable, we find the result is robust. Furthermore, by excluding the competitive channel, language communication, through which language differences influence innovation, we conclude the main channel is cultural identity.

Suggested Citation

  • Chang'an Wang & Junqian Wu & Jianqing Ruan & Xiaoqian Liu, 2022. "Language differences, cultural identity, and innovation," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1716-1736, December.
    • Handle: RePEc:bla:growch:v:53:y:2022:i:4:p:1716-1736
    DOI: 10.1111/grow.12631
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    3. Liu, Lihua & Weng, Danyan & Zhang, Qin, 2023. "Unintended consequences of tax enforcement on corporate innovation: Evidence from a natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1292-1309.
    4. Gang, Cuiui & Li, Juanwei & Hu, Haiqing & Wei, Wei, 2023. "Dynamic co-movement between economic growth and language: A new perspective of technological progress," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 705-721.
    5. Kadzima, Marvelous & Machokoto, Michael, 2023. "A semi-parametric analysis of the cash flow sensitivity of cash," Finance Research Letters, Elsevier, vol. 56(C).

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