To what extent does linguistic proximity promote Portuguese exports. A study applied to the European Union and Mercosur

Abstract

The intense global economic integration of the last decades has increased the trade between countries. However, barriers to trade continue to exist. Several studies have already confirmed that the language variable influences the choice of international partners, since it may increase or decrease transaction costs. We have examined the relationship between Portuguese exportations and the dominant language in the country of destination, also looking at the influence of being of member of the EU or Mercosur. We conclude that linguistic proximity plays an important role in the choice of foreign trading partners, such as belonging to the EU