Author: RAND Europe
Date of Publication: 2022
Key messages on language skills:
- UK exports are predicted to increase if there is an increase in languages: a full eradication of language barriers with Arabic-, Chinese-, French- and Spanish-speaking countries could increase UK exports annually by about £19bn.
- Investing in languages education in the UK will most likely return more than the investment cost. The study estimates benefit-to-cost ratios of about 2:1 for promoting Arabic, French, Mandarin or Spanish education, meaning that spending £1 could return about £2.
- Having a common language can, all else being equal, reduce trade barriers and foster trade, akin to free-trade agreements.
- Learning additional languages enhances human capital, with multilingual individuals potentially earning higher wages and having better labour-market outcomes.
- While English plays an important role in determining business relations worldwide, it is not the sole driver in certain sectors and other languages matter equally, if not more, in reducing trade barriers.
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