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The Relation Between Global Migration and Trade Networks

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Author Info

  • Paolo Sgrignoli

    ()
    (IMT Lucca Institute for Advanced Studies)

  • Rodolfo Metulini

    ()
    (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

In this paper we develop a methodology to analyze and compare multiple global networks. We focus our analysis on the relation between human migration and trade. First, we identify the subset of products for which the presence of a community of migrants significantly increases trade intensity. To assure comparability across networks, we apply a hypergeometric filter to identify links for which migration and trade intensity are both significantly higher than expected. Next we develop an econometric methodology, inspired by spatial econometrics, to measure the effect of migration on international trade while controlling for network interdependencies. Overall, we find that migration significantly boosts trade across sectors and we are able to identify product categories for which this effect is particularly strong.

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File URL: http://eprints.imtlucca.it/1830/1/EIC_WP_6_2013.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by IMT Institute for Advanced Studies Lucca in its series Working Papers with number 6/2013.

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Length: 19 pages
Date of creation: Oct 2013
Date of revision: Oct 2013
Handle: RePEc:ial:wpaper:6/2013

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Keywords: Trade; Migration; networks; gravity model; spatial econometric;

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  14. Massimo Riccaboni & Alessandro Rossi & Stefano Schiavo, 2013. "Global networks of trade and bits," Journal of Economic Interaction and Coordination, Springer, vol. 8(1), pages 33-56, April.
  15. Stephen G. Hall & Pavlos Petroulas, 2008. "Spatial Interdependencies of FDI Locations: A Lessening of the Tyranny of Distance?," Working Papers 67, Bank of Greece.
  16. Ming-Long Lee & R. Kelley Pace, 2005. "Spatial Distribution of Retail Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 53-69, August.
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