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Linguistic and Religious Influences on Foreign Trade: Evidence from East Asia *
Author(s) -
Guo Rongxing
Publication year - 2007
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.2007.00248.x
Subject(s) - gravity model of trade , regional trade , economics , cold war , economic integration , international trade , period (music) , trade barrier , east asia , international economics , free trade , political science , china , philosophy , politics , law , aesthetics
Using a modified gravity model and the cross‐sectional data of East Asian economies, the present paper presents evidence that supports the view that the effect of distance‐related transaction costs on trade tends to fall over time. Overall religious influence on foreign trade exists in the post‐Cold War period but not during the Cold War period. The effects of language on inter‐regional trade and of religion on intra‐regional trade both weaken over time. In all cases, religion tends to have more significant influences on intra‐regional trade than language, and language tends to exert more significant influences on inter‐regional trade than religion. Finally, from 1985 to 1995 there is an indication that: (i) English becomes more important for inter‐regional trade; (ii) Bahasa, English and Khmer become less important for intra‐regional trade; and (iii) Chinese plays an increasing role in both intra‐regional and inter‐regional trade.