International trade, foreign direct investment, and transaction costs in languages

We examine the roles of major trade languages in international trade and foreign direct investment (FDI) flows. Empirical results confirm that speaking a common language increases trade and FDI flows, yet the effect of major languages is more substantial in FDI than in international trade. In addition, we find evidence of a hierarchy in transaction costs of major languages in both trade and FDI.

MoreLess

Year of publication:	2011
Authors:	Oh, Chang Hoon ; Travis Selmier, W. ; Lien, Donald
Published in:	Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics). - Elsevier, ISSN 2214-8043. - Vol. 40.2011, 6, p. 732-735
Publisher:	Elsevier
Subject:	Language \| Gravity equation \| International trade \| Foreign direct investment \| Transaction costs

More details

Type of publication:	Article
Classification:	F10 - Trade. General ; F20 - International Factor Movements and International Business. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010573928