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The migration network effect on international trade

Author

Listed:
  • Rodolfo Metulini

    (IMT School for Advanced Studies Lucca)

  • Paolo Sgrignoli

    (IMT School for Advanced Studies Lucca)

  • Stefano Schiavo

    (Department of Economics and Management, University of Trento)

  • Massimo Riccaboni

    (IMT School for Advanced Studies Lucca)

Abstract

This paper studies the relationship between migration and trade, with the aim of measuring both direct and indirect network effects. We analyze trade of diferentiated and homogeneous goods using an econometric approach inspired by spatial econometrics, proposing a new way to define country neighbors based on the most intense links in the migration network. We find that migration significantly affects trade across categories both in direct and in indirect way. The indirect impact highlights a stronger competitive effect of third country migrants for homogeneous goods. We also confirm that the effect of migration channels is higher on differentiated goods.

Suggested Citation

  • Rodolfo Metulini & Paolo Sgrignoli & Stefano Schiavo & Massimo Riccaboni, 2014. "The migration network effect on international trade," Working Papers 5/2014, IMT School for Advanced Studies Lucca, revised May 2014.
    • Handle: RePEc:ial:wpaper:5/2014
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    File URL: http://eprints.imtlucca.it/2193/1/EIC_WP_5_2014.pdf
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    References listed on IDEAS

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    1. Bulawayo, Maio & Mudenda, Dale & Ndulo, Manenga & Simwanza, Charles, 2020. "Does Immigration Stimulate Non-Traditional Exports? Evidence from Zambia," African Journal of Economic Review, African Journal of Economic Review, vol. 8(3), November.

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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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