Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/242449 
Year of Publication: 
2021
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2021: Climate Economics
Publisher: 
ZBW - Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
I investigate the effect of changing language skills on trade using an unique panel data set on spoken language. It tracks over thirty, mostly European, countries from the mid-90s to the beginning of the 2010s. In this period, European countries have witnessed an advancing trade integration and large changes in foreign language knowledge. I estimate a significant and positive effect of changing common English skills on trade using the gravity model and controlling for endogeneity by pair fixed effects and a globalization trend. General equilibrium welfare analysis shows that all countries except for Russia profited from the rise in the percentage of English speakers. Further, in a re-estimation of Fidrmuc and Fidrmuc (2016), I find a significant causal impact of aggregate common spoken language on trade, but not for any specific language.
Subjects: 
language
international trade
gravity model
JEL: 
F14
F15
Z13
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.