Theoretical Analysis And Empirical Test On The Influence Of Linguistic Traits On The Economic Growth

Under the circumstance of economic globalization,international trade exchanges having become increasingly frequent,and both science and technology information exchanges need language support,How to formulate an effective language policy which could not only guarantee the characteristics of the traditional language,avoid the cultural convergence in the process of economic globalization,but also to maintain stable economic growth,is an important issue in institutional economics research.This paper,after thoroughly reviewing the relevant literatures of economic growth being affected by the linguistics,combines transaction cost theory and comparative institution analysis of institution economics,endogenous growth model of macro economics and semiotic and structural theory of linguistics,and resorts to the multiple means of econometrics to have a profo,und study on the mechanism and effect of language traits to economy growth.Through the analysis of the trend of language change,we find the tendency of simplification and simplification of language,and subsequently we propose the core key:"linguistic trait",which is used to explain the difference of national growth caused by linguistic traits.Starting from the three basic concepts of preference,transaction cost and technological progress,we construct the theoretical framework of linguistic characteristics influencing economic growth and propose three basic hypotheses,testing them by using the relevant worldwide panel data.Finally,we focus back on China,observing the historical connection and meaning between modern language culture transformation and economic development,and testing the three channels that the changes of Chinese foreign language education after 40 years“reform and opening up”could through language traits to affect economy growth,and providing realistic and theoretical basis for the Chinese language strategic planning.The research shows that:Firstly,under the constraints of language preference,the absolute difficulty of language is an important factor affecting the formation of trade contracts,which affect a country's growth level through the spillover effects of trade and FDI;Secondly,the relative difficulty of language is the unobserved transaction cost,which affects the economic growth of a country through trade costs,and counteracts the choice of transaction language through the scale effect of goods;Thirdly,the characteristics of language reflect the exchange of ideas between people,which impact the technology progress between countries through the absorbed ability of human capital and ultimately affect a country's economic growth.Fourthly,with the deepening of reform and opening up,China is having a large-scale language education reform to create a good market environment.Fifthly,from the perspective of world economic development trend,the development of language has a tendency of being singular and simple.Therefore,it is necessary to reduce the relative difficulty of Chinese language through language and cultural communication on the basis of mastering the bilateral language and releasing the language dividend,which can bring about the harmonious development of economic growth and maintain the national cultural characteristics.Thus it needs to combine the short-term national language policy and a long-term planning to construct the "Hard Power" of Chinese Culture.Compared with the existing literature,the main contributions of this paper are as follows:Firstly,this article studies the language,as a symbol of system,its influence on the economic growth,expounds its logic mechanism and constructs the theoretical framework of economic growth being influenced by linguistic trait.Secondly,we study its essential characteristics,propose the“relative difficulty”and“absolute difficulty”such two basic concepts of linguistic trait,use the basic theorem of linguistics to carry out theoretical description and empirical measurement,examine three theoretical hypotheses of linguistic traits for economic growth by using panel data from 179 countries and/or regions worldwide,and also have a preliminary discussion of language difficulty difference being the main reason why trade preference,transaction cost and technology diffusion existing.Thirdly,after nearly 40 years of reform and opening up in China,we have tested the effects of language acquisition on economic development for the first time by means of natural experiment and from the perspective of economic growth,emphasizes the importance of understanding of the acquisition of the world's common language and provides a new standard for testing the effectiveness of the English test.Fourthly,this article not only proves that the absolute difficulty of language can affect economic growth,but also emphasizes the importance of the relative difficulty of language to economic development.From the practical point of view,in the face of English becoming the main language on the world stage,we not only explain the formation mechanism by theory and demonstration,more importantly,we derive the conclusion that maintaining the harmonious development between language and economy lies not only in studying lingua franca to change the absolute difficulty of language,but also in changing the relative difficulty of language through long-term cultural propaganda.We could change the relative difficulty and absolute difficulty of the language through the long-term arrangement of Chinese "going out" strategy,and make the economy increase by language dividend.