From colonial ties to lingua franca: language effects in trade via a two-step gravity approach

From colonial ties to lingua franca: language effects in trade via a two-step gravity approach | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article From colonial ties to lingua franca: language effects in trade via a two-step gravity approach Ticiana Grecco Zanon Moura This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7160996/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper investigates the role of language in shaping international trade patterns between 2000 and 2019, a period marked by the emergence of Asia as a central player in global commerce. Drawing on a panel of bilateral export data for 185 countries, we combine a two-step structural gravity model with detailed linguistic indicators from the Domestic and International Common Language (DICL) database. We distinguish between official, native, and acquired language links, as well as linguistic proximity measures, to assess how different types of linguistic affinity affect trade. The results reveal that shared official and native languages significantly enhance trade flows, but their effects are concentrated in regions with strong colonial or institutional ties, such as Europe, Africa, and the Americas. In contrast, acquired language proficiency and linguistic proximity have become increasingly important, especially in Asia. Temporal analysis further shows a decline in the influence of native language alignment and a rise in the trade-enhancing role of acquired languages over time. These findings support the view that while historical linguistic ties remain relevant, global trade is gradually shifting toward more flexible modes of communication. The paper contributes to the literature by documenting both regional and temporal heterogeneity in language effects, highlighting the strategic importance of linguistic capacity in today’s interconnected trade landscape. JEL: F14; F15; C23, Z13 international trade language gravity model linguistic proximity globalization bilateral exports Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7160996","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":492530469,"identity":"0c0023ad-6c1f-44bc-9140-bc3f6afcc463","order_by":0,"name":"Ticiana Grecco Zanon Moura","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAt0lEQVRIiWNgGAWjYDADfgh1gLBKHhhDsoFkLQYHiNViz7/86YaPbffkjW8kH/7wg+FOPmFbJB6k3ZzZVmy47UZammQPwzPLBsJaDhy7zduWwLjtRo4ZMwPDYQMibDnYBtJiv3lG/ufPxGnhb2YDaUncIJHDIE2clhtsbDdnnEtInnHmmZlkj8EzwlrY+48/u/GhLMG2vz358YcfFXcIa2GQSEDmEaEBmFAOEKNqFIyCUTAKRjQAALkoP3BKHW7KAAAAAElFTkSuQmCC","orcid":"","institution":"Universidade Estadual de Santa Cruz","correspondingAuthor":true,"prefix":"","firstName":"Ticiana","middleName":"Grecco Zanon","lastName":"Moura","suffix":""}],"badges":[],"createdAt":"2025-07-19 00:08:13","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-7160996/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-7160996/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":87978978,"identity":"8838f38b-d55a-4073-8c54-8b089a580cf4","added_by":"auto","created_at":"2025-07-31 05:12:57","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":487066,"visible":true,"origin":"","legend":"","description":"","filename":"Manuscriptfinal.pdf","url":"https://assets-eu.researchsquare.com/files/rs-7160996/v1_covered_54f91fbb-3be6-4ad3-8281-907c89fbefac.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"From colonial ties to lingua franca: language effects in trade via a two-step gravity approach","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"international trade, language, gravity model, linguistic proximity, globalization, bilateral exports","lastPublishedDoi":"10.21203/rs.3.rs-7160996/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-7160996/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper investigates the role of language in shaping international trade patterns between 2000 and 2019, a period marked by the emergence of Asia as a central player in global commerce. 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