I investigate the effect of changing language skills on trade using an unique panel data set on spoken language. It tracks over thirty, mostly European, countries from the mid-90s to the beginning of the 2010s. In this period, European countries have witnessed an advancing trade integration and...

This paper empirically examines the heterogeneity in the effects of multiple dimensions of distance on trade across detailed product groups. Using finite mixture modelling on bilateral trade data at the 3-digit SITC level, we endogenously group product categories into an, a priori unknown,...