Journal ArticleDOI
International trade, foreign direct investment, and transaction costs in languages
TLDR
The authors examined the role of major trade languages in international trade and foreign direct investment (FDI) flows and found evidence of a hierarchy in transaction costs of major languages in both trade and FDI.Abstract:
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.read more
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Language in international business: a review and agenda for future research
TL;DR: The authors systematically reviewed 264 articles on language in international business and evaluated the field's achievements to date in terms of theories and methodologies, and summarized core findings by individual, group, firm, and country levels of analysis.
Posted Content
Returns to Foreign Language Skills in a Developing Country: The Case of Turkey
Antonio Di Paolo,Aysit Tansel +1 more
TL;DR: This paper found positive and significant returns to proficiency in English and Russian, which increase with the level of competence, in Turkish labor market, although their economic value seems mostly linked to an increased likelihood to hold specific occupations rather than increased earnings within occupations, and also explore the heterogeneity in returns to different levels of proficiency by frequency of English use at work, birth-cohort, education, occupation and rural/urban location.
Journal ArticleDOI
Returns to Foreign Language Skills in a Developing Country: The Case of Turkey
Antonio Di Paolo,Aysit Tansel +1 more
TL;DR: This article found positive and significant returns to proficiency in English and Russian, which increase with the level of competence, in Turkish labor market, although their economic value seems mostly linked to an increased likelihood to hold specific occupations rather than increased earnings within occupations, and also explore the heterogeneity in returns to different levels of proficiency by frequency of English use at work, birth-cohort, education, occupation and rural/urban location.
Posted Content
A concise bibliography of language economics
TL;DR: A bibliography which, though not exhaustive, provides an extensive set of references to several categories of literature in language economics and consolidates the respective literature lists used by the authors over the years in their research and teaching.
Posted Content
Language in international business : A review and agenda for future research
TL;DR: The authors reviewed 264 articles on language in international business and evaluated the field's achievements to date in terms of theories and methodologies, and summarized core findings by individual, group, firm, and country levels of analysis.
References
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Gravity with Gravitas: A Solution to the Border Puzzle
TL;DR: This article showed that the gravity model usually estimated does not correspond to the theory behind it and showed that national borders reduce trade between the US and Canada by about 44% while reducing trade among other industrialized countries by about 30%.
Journal ArticleDOI
Gravity with Gravitas: A Solution to the Border Puzzle
TL;DR: In this article, a method that consistently and efficiently estimates a theoretical gravity equation and correctly calculates the comparative statics of trade frictions was developed to solve the famous McCallum border puzzle.
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Panel data and unobservable individual effects
TL;DR: In this article, the authors derived a test for the presence of this effect and for the over-identifying restriction they use; necessary and sufficient conditions for identification of all the parameters in the model; and the asymptotically efficient instrumental variables estimator and conditions under which it differs from the within-groups estimator.
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Do Free Trade Agreements Actually Increase Members' International Trade?
TL;DR: In this paper, the authors address the endogeneity of free trade agreements using instrumental-variable (IV) techniques, control function (CF) techniques and panel-data techniques; IV and CF approaches do not adjust for endogeneity well, but a panel data approach does.