The Export Promoting Effect of Emigration: Evidence from Denmark
AbstractThe theoretical claim that ethnic networks encourage trade has found broad empirical support in the literature on migration, business networks and international trade. Ethnic networks matter for the exporting firm, as they exhibit the potential to lower fixed and variable cost of exporting. This paper provides a first attempt to identify the export-promoting effect of emigration on the firm level. Using detailed Danish firm-level data, we can parsimoniously control for export determinants other than emigration, unobserved heterogeneity at the firm level, as well as for self-selection of firms into exporting. Additionally accounting for taste similarity between Denmark and its trade partners, our findings suggest a positive effect of emigration on Danish manufacturing trade within Europe, thereby corroborating preceding studies on aggregate data. Nevertheless, as a novel insight, our analysis reveals that the only beneficiaries of emigration are small enterprises.
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Bibliographic InfoPaper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 11-8.
Length: 30 pages
Date of creation: 01 May 2011
Date of revision:
Contact details of provider:
Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
Emigration; Brain Drain; Small Businesses; International Trade; Firm-level analysis;
Other versions of this item:
- Sanne Hiller, 2011. "The Export Promoting Effect of Emigration: Evidence from Denmark," FIW Working Paper series 070, FIW.
- Hiller, Sanne, 2011. "The export promoting effect of emigration: Evidence from Denmark," Center for European, Governance and Economic Development Research Discussion Papers 126, University of Goettingen, Department of Economics.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
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