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Talking Trade: Language Barriers in Intra-Canadian Commerce

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  • Nicolas Sauter

Abstract

This paper tests for one mechanism that can explain the existence of a language barrier to trade. Specifically, I ask if those industries that require more cross-border communication in order to export their products trade more between Canadian provinces that know the other's language(s). I find that trade in industries with a need to communicate directly (orally) with importers increases with the probability that people in another province speak the same language. This finding can fill a missing link in the empirical trade literature, which lacked convincing arguments for the observed correlation between language commonality and the total volume of trade.

Suggested Citation

  • Nicolas Sauter, 2009. "Talking Trade: Language Barriers in Intra-Canadian Commerce," FIW Working Paper series 023, FIW.
    • Handle: RePEc:wsr:wpaper:y:2009:i:023
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    References listed on IDEAS

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    2. Daria Ciriaci & Alessandro Muscio, 2011. "University choice, research quality and graduates' employability: Evidence from Italian national survey data," Working Papers 48, AlmaLaurea Inter-University Consortium.
    3. Roberto Antonietti & Massimo Loi, 2014. "The demand for foreign languages in Italian manufacturing," Working Papers 57, AlmaLaurea Inter-University Consortium.
    4. Christian Reiner, 2010. "Brain competition policy as a new paradigm of regional policy: A European perspective," Papers in Regional Science, Wiley Blackwell, vol. 89(2), pages 449-461, June.

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    More about this item

    Keywords

    Language; Trade cost; Gravity model; Canada;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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