Study On The Impact Of Language Distance On China’s Service Trade Flow

With the restructuring of global industries,trade in services has received increasing attention and has gradually become a new focus in the trade of various countries and a new driving force for economic development.However,there are relatively few studies on trade in services based on cultural differences as a non-institutional perspective.Therefore,in order to promote the development of service trade and analyze the determinants of service trade,specific non-institutional cultural factors need to be studied in depth.This paper compares the literature on the impact of informal institutional cultural differences and language distance on service trade,analyzes the differences in consumer preferences and trade costs brought about by cultural differences and language distance,and explains the mechanism of action of the impact of language distance on service trade flows.Combining its mechanism of action to establish a trade gravity model containing language distance using empirical analysis and comparative analysis,it provides theoretical support for the inhibitory effect of language distance on bilateral flows of service trade.This paper conducts an empirical study based on the panel data of bilateral flows of services trade with China from 2015-2020 of 30 trading partner countries as the research sample.The regression results of this paper show that the regression coefficient of language distance between countries and Chinese language is significantly negative,which means that the closer the language distance is,the greater the service trade import and export flows are.This is because the closer the language distance between two countries,the more similar the consumer preferences,the more convenient the communication,and the lower the trade cost,which in turn promotes the increase of service trade import and export flows.At the same time,this paper also finds that language distance has a significant negative impact on low-and middle-income countries than high-income countries;the language distance between each country’s language and Chinese has a higher negative impact than that of English.Secondly,the linguistic distance between English and Chinese is replaced by the linguistic distance between English and Chinese,and the regression results also show that the service trade flows are related to the linguistic distance between English and Chinese,which indicates that the impact of linguistic distance on service trade flows is robust.Finally,this paper establishes the interaction term between Chinese and English for the empirical regression,and the results show that there is a "synergistic effect" between the two language distances on the impediment of service trade in China.The empirical analysis of this paper is based on language distance,which broadens the research content of service trade and provides a new perspective for the subsequent related research.Secondly,this paper is dedicated to investigate the impact of language on service trade and the difference between English and Chinese on service trade flows.Based on the findings of this paper,we should,on the one hand,improve the level of national language services,strengthen the training of English language quality of practitioners,and enhance the international promotion of Chinese language,so as to achieve the maximum promotion effect according to local conditions;on the other hand,we should guide enterprises to pay attention to the cultural barriers of service trade,enhance the cultural soft power and practice the strategy of cultural going out,so as to reduce the language barriers and enhance the soft power of China and its influence in the international arena.influence in the international arena.