Same Same But Different: Dialects and Trade

Arbeitspapier

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 paper, we show that this trade-promoting effect of language is likely to reflect cultural ties, rather than lower costs of communication or similar institutions. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect between regions have a sizable and significant positive impact on intra-national trade. We interpret this finding as evidence for the effect of culture on trade.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4245

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Trade ; Economic Integration ; Cultural Economics; Economic Sociology; Economic Anthropology: General
• Subject: language ; culture ; trade costs ; gravity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lameli, Alfred ; Nitsch, Volker ; Suedekum, Jens ; Wolf, Nikolaus
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/74505
• Last update: 10.03.2025, 11:43 AM CET