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The Language of Economic Growth: A New Measure of Linguistic Heterogeneity

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  • Liu, Amy H.
  • Pizzi, Elise

Abstract

Conventional wisdom holds that languages, as ethnic markers, build communities with shared preferences and strong social networks. Consequently, ethnolinguistic homogeneity can facilitate growth. This article challenges this conception of language as a cultural marker. It argues that language is also a practical vehicle of communication; people can be multilingual, and second languages can be learned. Hence language boundaries are neither (1) congruent with ethnic boundaries nor (2) static. If true, the purported advantages of ethnolinguistic homogeneity should also be evident in countries with large populations of non-native speakers conversant in official languages. The study tests this hypothesis using an original cross-national and time-variant measure that captures both mother-tongue speakers and second-language learners. The empirical results are consistent with the understanding of language as an efficiency-enhancing instrument: countries with exogenously high levels of heterogeneity can avoid the ‘growth tragedy’1 by endogenously teaching the official language in schools.

Suggested Citation

  • Liu, Amy H. & Pizzi, Elise, 2018. "The Language of Economic Growth: A New Measure of Linguistic Heterogeneity," British Journal of Political Science, Cambridge University Press, vol. 48(4), pages 953-980, October.
    • Handle: RePEc:cup:bjposi:v:48:y:2018:i:04:p:953-980_00
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    Cited by:

    1. Zhu, Junbing & Grigoriadis, Theocharis N., 2022. "Chinese dialects, culture & economic performance," China Economic Review, Elsevier, vol. 73(C).
    2. Michele Gazzola & Torsten Templin & Lisa J. McEntee-Atalianis, 2020. "Measuring Diversity in Multilingual Communication," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 545-566, January.
    3. Osama Alhendi & József Tóth & Péter Lengyel & Péter Balogh, 2021. "Tolerance, Cultural Diversity and Economic Growth: Evidence from Dynamic Panel Data Analysis," Economies, MDPI, vol. 9(1), pages 1-16, February.
    4. Nazliben, Kamil Korhan & Renneboog, Luc & Uduwalage, Emil, 2022. "Social Diversity on Corporate Boards in a Country Torn by Civil War," Discussion Paper 2022-001, Tilburg University, Center for Economic Research.
    5. 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.
    6. Xiong, Jiacai & Yang, Zelin & Wang, Xin & Chan, Kam C., 2023. "Does dialect diversity affect entrepreneurial activities? Evidence from China," Economic Modelling, Elsevier, vol. 128(C).
    7. Adelaide Baronchelli & Alessandra Foresta & Roberto Ricciuti, 2020. "The Words That Keep People Apart. Official Language, Accountability and Fiscal Capacity," CESifo Working Paper Series 8437, CESifo.
    8. Nazliben, Kamil Korhan & Renneboog, Luc & Uduwalage, Emil, 2022. "Social Diversity on Corporate Boards in a Country Torn by Civil War," Other publications TiSEM b4180c31-8e9a-4009-8b50-1, Tilburg University, School of Economics and Management.

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