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Isolating the Network Effect of Immigrants on Trade

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  • Mariya Aleksynska
  • Giovanni Peri

Abstract

Within the migration-trade nexus literature, this paper proposes a more carefully defined measure of migration business networks, and quantifies its impact on bilateral trade. Controlling for the overall bilateral stock of migrants, the share of migrants employed in managerial/business-related occupations has a strong additional effect on trade, and especially on exports. Those immigrants should be the ones directly involved in the diffusion of relevant information for trading companies. Their presence, more than the presence of immigrants overall, or of highly educated immigrants, is found to enhance trade. When we control for the presence of highly educated immigrants, the share of immigrants in business network occupations shows a particularly large effect on trade in differentiated goods. Specifically, we find that highly educated individuals in business-related occupations are those enhancing export by the largest margin. Business network effect is particularly important for culturally different countries, such as the ones with different legal origin.

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Bibliographic Info

Paper provided by CEPII research center in its series Working Papers with number 2011-26.

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Date of creation: Dec 2011
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Handle: RePEc:cii:cepidt:2011-26

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Keywords: MIGRATION; INTERNATIONAL TRADE; BUSINESS NETWORKS; DIFFERENTIATED GOODS;

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References

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Citations

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Cited by:
  1. Hélène Ehrhart & Maëlan Le Goff & Emmanuel Rocher & Raju Jan Singh, 2012. "Does Migration Foster Exports? An African Perspective," Working Papers 2012-38, CEPII research center.
  2. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect ?," FSES Working Papers 436, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
  3. repec:mod:depeco:0002 is not listed on IDEAS
  4. Michael Good, 2012. "How Localized is the Pro-trade Effect of Immigration? Evidence from Mexico and the United States," Working Papers 1203, Florida International University, Department of Economics.
  5. Marina Murat, 2013. "Education ties and investments abroad. Empirical evidence from the US and UK," Center for Economic Research (RECent) 091, University of Modena and Reggio E., Dept. of Economics.
  6. Michael Good, 2013. "Geographic Proximity and the Pro-trade Effect of Migration: State-level Evidence from Mexican Migrants in the United States," 2013 Papers pgo530, Job Market Papers.
  7. repec:mod:depeco:0014 is not listed on IDEAS

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