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The migration network effect on international trade

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Author Info

  • Rodolfo Metulini

    ()
    (IMT Lucca Institute for Advanced Studies)

  • Paolo Sgrignoli

    ()
    (IMT Lucca Institute for Advanced Studies)

  • Stefano Schiavo

    (Department of Economics and Management, University of Trento)

  • Massimo Riccaboni

    ()
    (IMT Lucca Institute for Advanced Studies)

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.

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File URL: http://eprints.imtlucca.it/2193/1/EIC_WP_5_2014.pdf
File Function: First version, 2014
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Bibliographic Info

Paper provided by IMT Institute for Advanced Studies Lucca in its series Working Papers with number 5/2014.

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Length: 20 pages
Date of creation: May 2014
Date of revision: May 2014
Handle: RePEc:ial:wpaper:5/2014

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Related research

Keywords: Trade; Migration; Gravity model; Spatial econometrics; Networks;

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References

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