The migration network effect on international trade
AbstractThis 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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Bibliographic InfoPaper provided by IMT Institute for Advanced Studies Lucca in its series Working Papers with number 5/2014.
Length: 20 pages
Date of creation: May 2014
Date of revision: May 2014
Trade; Migration; Gravity model; Spatial econometrics; Networks;
Find related papers by 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-05-17 (All new papers)
- NEP-GEO-2014-05-17 (Economic Geography)
- NEP-INT-2014-05-17 (International Trade)
- NEP-MIG-2014-05-17 (Economics of Human Migration)
- NEP-URE-2014-05-17 (Urban & Real Estate Economics)
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