Working Paper
The Language Effect in International Trade: A Meta-Analysis
Peter Egger, Andrea Lassmann
CESifo, Munich, 2011
CESifo Working Paper No. 3682
CESifo, Munich, 2011
CESifo Working Paper No. 3682
![](https://cesifo.org/DocImg/cesifo1_wp3682.jpg?c=1689237107)
Gravity models of international trade have been frequently applied to estimate the impact of common (official or spoken) language on bilateral trade. This study provides a meta-analysis based on 701 language effects collected from 81 academic articles. On average, a common (official or spoken) language increases trade flows directly by 44%.
CESifo Category
Trade Policy
Trade Policy
Keywords: common language, gravity, international trade, trade costs
JEL Classification: C210, O400, H540, R110