One Nation, One Language? Domestic Language Diversity, Trade and Welfare
Gurevich, Tamara; Herman, Peter R.; Toubal, Farid; Yotov, Yoto V. (2020), One Nation, One Language? Domestic Language Diversity, Trade and Welfare. https://basepub.dauphine.psl.eu/handle/123456789/21895
TypeDocument de travail / Working paper
Series titleCEPII Working Paper
MetadataShow full item record
Herman, Peter R.
Laboratoire d'Economie de Dauphine [LEDa]
Yotov, Yoto V.
Abstract (EN)Using new data on linguistic diversity across and within countries, we examine novel channels though which language affects trade patterns and economic welfare. We find that linguistic similarity within a country accounts for about 10 percent of estimated `home bias', demonstrating the importance of shared languages for domestic integration. To highlight the general equilibrium implications of domestic language proximity, we simulate the repeal of Quebec's Bill 101, which made French an official language in Canada and established fundamental language rights for Frenchspeakers. The analysis demonstrates that domestic language diversity has significant implications for Canada's welfare but also sizable economic consequences that stretch far beyond its borders.
Subjects / KeywordsCommon Language; Ethno-linguistic Diversity; Identity, International Trade; Domestic Trade; Domestic Trade Costs
Showing items related by title and author.