English Language as a Priceless Factor in International Trade: A comparative study using data envelopment analysis

This study investigates the efficiency of English language utilization in international trade. Through a Data Envelopment Analysis (DEA) model employing variable returns to scale (VRS) in the output-oriented direction. The analysis draws on data from 14 countries varying in economic scale and geographic distribution. Findings indicate notable disparities in language efficiency: 11 countries demonstrated full proficiency, while 3 exhibited substantial inefficiencies. The results suggest that countries with medium-sized economies (e.g., Germany and Sweden) derive greater trade benefits from improvements in language proficiency compared to smaller economies (e.g., Norway). Furthermore, the study identifies a nonlinear relationship between language-related inputs and trade outputs, wherein marginal enhancements in certain language factors lead to disproportionate gains in trade performance. The study advocates for the implementation of tailored language policies that consider a country's specific economic structure and sectoral demands, emphasizing the role of technological tools in bridging language proficiency gaps. It also recommends future research to explore the influence of artificial intelligence and conduct sub-sectoral analyses within international trade.