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The paper is devoted to an econometric analysis of learning foreign languages in all parts of the world. Our sample … learning while the world population of speakers of the native language generally discourages it. Trade with speakers of a … other three key variables (literacy rate, linguistic distance, and world population of native speakers) because its …
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In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...
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