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The network of migrants and international trade

Author

Listed:
  • Rodolfo Metulini

    (University of Brescia)

  • Paolo Sgrignoli

    (Unipol Financial Group)

  • Stefano Schiavo

    (University of Trento
    Observatoire Français des Conjonctures Économiques)

  • Massimo Riccaboni

    (IMT School for Advanced Studies Lucca
    KU Leuven)

Abstract

This paper investigates the relationship between international trade and migration with the specific aim of estimating direct and indirect effect of the latter on cross-border flows of both homogeneous and differentiated goods. Adopting a spatial econometric approach along with a gravity model set-up, we account for the role of ethnic communities in neighbouring countries on trade, and we propose a new way to define neighbours based on the intensity of links in the migration network. Our approach is particularly well suited to measure the indirect effect stemming from the presence of significant ethnic communities on trade through a “market familiarization” effect. Using data covering all countries between 1970 and 2000, we find a significant indirect effect of migration on trade, that depends on the chosen weight matrix.

Suggested Citation

  • Rodolfo Metulini & Paolo Sgrignoli & Stefano Schiavo & Massimo Riccaboni, 2018. "The network of migrants and international trade," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 763-787, December.
    • Handle: RePEc:spr:epolit:v:35:y:2018:i:3:d:10.1007_s40888-018-0106-6
    DOI: 10.1007/s40888-018-0106-6
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    3. Zekeriya Alperen Bedirhan & Ugur Ozgoker, 2021. "Euroscepticism and Traditions of Nationalism," European Journal of Social Sciences Articles, Revistia Research and Publishing, vol. 4, ejss_v4_i.

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    More about this item

    Keywords

    Trade; Migration; Gravity model; Spatial econometrics; Networks;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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