초록 열기/닫기 버튼
While linguistic differences impede international trade by creating communication barriers, linguistic heterogeneity is likely to facilitate trade for at least two reasons. First, the scope of comparative advantages will be wider when the trading partners represent a linguistically heterogeneous environment. Second, linguistically heterogeneous countries will be more accustomed to dealing with the communication barriers arising from linguistic differences. Using a sample of East and South Asian economies, the empirical evidence that supports the two heterogeneity hypotheses was found, It confirmed the negative effect of linguistic differences found in earlier studies.
