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Lexicographic biases in international trade

Author

Listed:
  • Cheng, Hua
  • Hu, Cui
  • Li, Ben G.

Abstract

The names of traders should not matter if information is symmetric across traders. By examining export data from Chinese customs, we find persistent lexicographic biases in firm-level export records. Firms whose names are lexicographically earlier in the Chinese-character rank export more to countries that have greater language proximities to Chinese, while firms whose names are lexicographically earlier in the English-romanization rank export more to countries that have greater language proximities to English. The lexicographic biases signify linguistic visibility as a source of comparative advantage in international trade.

Suggested Citation

  • Cheng, Hua & Hu, Cui & Li, Ben G., 2020. "Lexicographic biases in international trade," Journal of International Economics, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:inecon:v:126:y:2020:i:c:s0022199620300623
    DOI: 10.1016/j.jinteco.2020.103346
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