Does English proficiency promote international trade?

Abstract

This study examines the impact of English proficiency on international trade using panel ARDL models with data from 105 countries spanning the period from 2011 to 2023. The findings reveal that English proficiency facilitates long-term growth in trade volumes by reducing transaction costs and enhancing global market access. However, its effects on trade balances are mixed, with regions such as Europe and Latin America experiencing negative associations, while Asia and the Middle East benefit from export-driven gains. In contrast, minimal long-term impact is observed in Africa due to linguistic diversity and structural challenges. The study highlights regional and contextual differences, emphasizing the importance of tailored policies to maximize trade benefits.

The extended results, which also include native English-speaking countries, reinforce the core findings and provide stronger evidence that English proficiency has a significant and positive effect on trade volume.