Language, Economic Development and Economic Globalization: The Case of OECD Countries

Abstract

Although the relation between economic development and economic globalization has been examined in the literature, the relation between linguistic diversity, economic development and economic globalization index has not been discussed much in the literature. With this aspect of the study, it is aimed to contribute to the literature. In this study, the relationship between linguistic diversity, economic globalization and economic development for 20 OECD founding countries between 1995 and 2018 was determined by Pesaran (2008) cross-section dependency test, Durbin-Hausman (2008) panel cointegration test and Emirmahmutoğlu and Köse (2011) panel causality tests. According to the panel causality test results of Emirmahmutoğlu and Köse (2011), it was found that there is a bidirectional causality relationship between linguistic diversity and economic development in OECD countries, a bidirectional causality relationship between economic development and economic globalization, and a unidirectional causality relationship from linguistic diversity to economic globalization.

Keywords: Language diversity, economic development, economic globalization, panel causality test.

DOI: 10.7176/JLLL/71-07

Publication date:August 31^st 2020