Talking trade: language barriers in intra-Canadian commerce

This article tests for one mechanism that can explain the existence of a language barrier to trade. Specifically, the author asks if those industries that require more cross-border communication to export their products trade more between Canadian provinces that know the other’s language(s). The author finds that trade in industries with a need to communicate directly (orally) with importers increases with the probability that people in another province speak the same language. This finding reveals a disadvantage for minority language regions in services trade.