TY  - RPRT
        AU  - Lameli, Alfred
AU  - Nitsch, Volker
AU  - Suedekum, Jens
AU  - Wolf, Nikolaus
        TI  - Same Same But Different: Dialects and Trade
        PY  - 2013/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7397
        UR  - https://www.iza.org/publications/dp7397
        AB  - Language is a strong and robust determinant of international trade patterns: Countries sharing a common language trade significantly more with each other than countries using different languages, holding other factors constant. In this paper, we show that this trade-promoting effect of language is likely to reflect cultural ties, rather than lower costs of communication or similar institutions. Analyzing unique data for a single-language country, Germany, we find that similarities in the local dialect between regions have a sizable and significant positive impact on intra-national trade. We interpret this finding as evidence for the effect of culture on trade.
        KW  - language
KW  - culture
KW  - trade costs
KW  - gravity
KW  - dialects
        ER  -