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The Export Promoting Effect of Emigration: Evidence from Denmark

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  • Sanne Hiller

Abstract

Ethnic networks exhibit the potential to lower barriers to trade. The paper identifies the export-promoting effect of emigration on the firm-level using Danish data for the year 2001. Accounting for taste similarity, self-selection and unobserved heterogeneity, three main findings are established. First, the elasticity of manufacturing exports to emigration is robust and of similar size as the effect of immigration. Secondly, only immigration encourages market entry but not emigration, suggesting that variable cost reductions and demand for home-country products are the driving force of emigrant network effects. Thirdly, benefits from emigration accrue exclusively to low-productivity firms.

Suggested Citation

  • Sanne Hiller, 2014. "The Export Promoting Effect of Emigration: Evidence from Denmark," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 693-708, November.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:4:p:693-708
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    2. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2017. "Anti-Migration as a Threat to Internationalization?," Ratio Working Papers 302, The Ratio Institute.
    3. Anna D’Ambrosio & Sandro Montresor, 2022. "The pro-export effect of subnational migration networks: new evidence from Spanish provinces," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 53-107, February.
    4. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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