Ethnic networks and U.S. exports
AbstractThis paper provides new estimates of the effects of ethnic networks on U.S. exports. In line with recent research, our dataset is a panel of exports from U.S. states to 29 foreign countries. Our analysis departs from the literature in two ways, both of which show that previous estimates of the ethnic-network elasticity of trade are sensitive to the restrictions imposed on the estimated models. Our first departure is to control for unobserved heterogeneity with properly specified fixed effects, which we can do because our dataset contains a time dimension absent from previous studies. Our second departure is to remove the restriction that the network effect is the same for all ethnicities. We find that ethnic-network effects are much larger than has been estimated previously, although they are important only for a subset of countries.
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Bibliographic InfoPaper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2005-069.
Date of creation: 2007
Date of revision:
Publication status: Published in Review of International Economics, February 2008, 16(1), pp. 199-213
Other versions of this item:
- Subhayu Bandyopadhyay & Cletus C. Coughlin & Howard J. Wall, 2005. "Ethnic Networks and U.S. Exports," Working Papers 05-15old1 Classification-, Department of Economics, West Virginia University.
- Subhayu Bandyopadhyay & Cletus C. Coughlin & Howard J. Wall, 2005. "Ethnic Networks and U.S. Exports," Working Papers 05-15old2 Classification-, Department of Economics, West Virginia University.
- Subhayu Bandyopadhyay & Cletus C. Coughlin & Howard J. Wall, 2005. "Ethnic Networks and U.S. Exports," Working Papers 05-15 Classification- JEL, Department of Economics, West Virginia University.
- Bandyopadhyay, Subhayu & Coughlin, Cletus C. & Wall, Howard J., 2006. "Ethnic Networks and U.S. Exports," IZA Discussion Papers 1998, Institute for the Study of Labor (IZA).
- F10 - International Economics - - Trade - - - General
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-01 (All new papers)
- NEP-NET-2005-12-01 (Network Economics)
- NEP-SOC-2005-12-01 (Social Norms & Social Capital)
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