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Linguistic distance and market integration in India

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Fenske, James and Kala, Namrata (2021) Linguistic distance and market integration in India. Journal of Economic History, 81 (1). pp. 1-39. doi:10.1017/S0022050720000650 ISSN 0022-0507.

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Official URL: https://doi.org/10.1017/S0022050720000650

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Abstract

The role of cultural distance in market integration, particularly in the developing world, has received relatively little attention. Using prices from more than 200 South Asian markets spanning 1861 to 1921, we show that linguistic distance correlates negatively with market integration. A one-standard-deviation increase in linguistic distance predicts a reduction in the price correlation between two markets of 0.121 standard deviations for wheat, 0.181 for salt, and 0.088 for rice. While factors like genetic distance, literacy gaps, and railway connections are correlated with linguistic distance, they do not fully explain the correlation between linguistic distance and market integration.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Economic development -- India, Language and languages -- Economic aspects -- India, Sociolinguistics, Agricultural prices -- India, Market integration, Prices -- India
Journal or Publication Title: Journal of Economic History
Publisher: Cambridge University Press
ISSN: 0022-0507
Official Date: March 2021
Dates:
DateEvent
March 2021Published
26 January 2021Available
4 August 2020Accepted
Volume: 81
Number: 1
Page Range: pp. 1-39
DOI: 10.1017/S0022050720000650
Status: Peer Reviewed
Publication Status: Published
Reuse Statement (publisher, data, author rights): This article has been accepted for publication in a revised form for publication in Journal of Economic History. Link to Journal’s site on https://www.cambridge.org/core/journals/journal-of-economic-history
Access rights to Published version: Restricted or Subscription Access
Copyright Holders: © The Economic History Association 2021
Date of first compliant deposit: 7 August 2020
Date of first compliant Open Access: 7 August 2020
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