The causal impact of common native language on international trade: Evidence from a spatial regression discontinuity design
evidence from a spatial regression discontinuity design
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Date
2015-03
Publication Type
Working Paper
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Abstract
This paper studies the effect of sharing a common native language on inter- national trade. Switzerland hosts three major native language groups which adjoin countries sharing the same native majority languages. In regions close to the internal language border the alternate major language is taught early on in school and not only understood but spoken by the residents. This setting allows for an assessment of the impact of common native rather than spoken language on transaction-level imports from neighbouring countries. Our findings point to an effect of common native language on extensive rather than on intensive margins of trade.
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published
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374
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KOF Swiss Economic Institute, ETH Zurich
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Subject
Culture; International trade; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; INTERNATIONAL TRADE; Quasi-Randomised experiments; MOTHER TONGUE + NATIVE LANGUAGE (LINGUISTICS); Common native language; Regression discontinuity design; INTERNATIONALER HANDEL; MUTTERSPRACHE (SPRACHWISSENSCHAFT)
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
03840 - Egger, Peter / Egger, Peter