Linguistic distance as a variable of the gravity model for international trade: example of China
AbstractThis article investigates the role of linguistic distance on bilateral trade by using a set of indicators aimed to depict linguistic distance or proximity of China and its major trade partners. For this purpose, the gravity model that uses the linguistic distance as one of the elements of analysis and forecasting of bilateral trade is utilized. To achieve this goal, existing theories of the gravitational model are considered, the concept of linguistic distance is defined and its expediency to be included in the gravitational model justified. As a result, the impact of linguistic distance on bilateral trade is measured.
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