Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Firm-level evidence for the language investment effect on SME exporters

Foreman-Peck, James S. ORCID: https://orcid.org/0000-0001-9826-5725 and Zhou, Peng ORCID: https://orcid.org/0000-0002-4310-9474 2014. Firm-level evidence for the language investment effect on SME exporters. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

[thumbnail of E2014_6.pdf]
Preview
PDF - Published Version
Download (808kB) | Preview

Abstract

Both analysis of international trade and the knowledge resource theory of the firm imply that language skills should play a vital role in exporting. This may be apparent to large multinationals with sites in many different linguistic locations, but we show it is less obvious to smaller companies. With data on the language used by each of a large sample of European small and medium sized enterprises in their export markets we test and estimate the effects of language assets on language performance in export markets and on export sales. Controlling for the possibility that language skills may be acquired by exporting, we find a very substantial export return to linguistic expertise, indicative of unexploited gains from investment in languages. There is also evidence of greater under-investment in language skills in English-speaking Europe, which we show can be a prediction of Konya’s (2006) trade model.

Item Type: Monograph (Working Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce
Publisher: Cardiff University
Date of First Compliant Deposit: 30 March 2016
Last Modified: 11 Mar 2023 03:05
URI: https://orca.cardiff.ac.uk/id/eprint/67399

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics