Effect of Native Language on Innovation and Economic Growth

Abstract

Language plays an important role in the economies of both developed and developing countries. We realized through our research that countries that pay enough attention to investing in their native language seem to have a sustainable economic performance but if the development of the native language is taken for granted, its effect on learning is impeding. This research is to investigate the effect of native language on economic growth and Innovation. We stipulate that use of native language increases economic growth and innovation. To achieve the above mentioned objective, the study utilizes panel dataset with the fixed and random effect techniques of estimation. The results show a positive effect of using native language on innovation and GDP per capita growth. The interaction term also shows a positive significant impact on GDP per capita growth. The connection between human development and economic growth is a multilevel one. there is a lopsided effect. We realized the lack of better language policy is linked with poor leadership.

Keywords: Native Language, GDP per capita, Innovation, Human development, Education, School Enrollment

JEL Classification: A14, F63, F68, L26