The Relation Between Global Migration and Trade Networks
AbstractIn 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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Bibliographic InfoPaper provided by IMT Institute for Advanced Studies Lucca in its series Working Papers with number 6/2013.
Length: 19 pages
Date of creation: Oct 2013
Date of revision: Oct 2013
Trade; Migration; networks; gravity model; spatial econometric;
Other versions of this item:
- Paolo Sgrignoli & Rodolfo Metulini & Stefano Schiavo & Massimo Riccaboni, 2013. "The Relation Between Global Migration and Trade Networks," Papers 1310.3716, arXiv.org, revised Oct 2013.
- F10 - International Economics - - Trade - - - General
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-18 (All new papers)
- NEP-MIG-2013-10-18 (Economics of Human Migration)
- NEP-NET-2013-10-18 (Network Economics)
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