Comparing the Networks of Ethnic Japanese and Ethnic Chinese in International Trade
AbstractIn this paper I re-examined the trade enhancing effects of ethnic Chinese networks, found by Rauch and Trindade (2002), on a newer and extended data set. The effects are estimated by the gravity equation with the product of the population ratio (or absolute number) of the ethnic Chinese in both the importing and exporting countries, and are reaffirmed positive and statistically significant. I also compared the effects of two different ethnic Japanese networks, i.e., the networks of long-term Japanese stayers in foreign countries, and the networks of permanent Japanese residents in foreign countries. It is found that the former has stronger trade enhancing effects than the latter. This shows that the effects of ethnic networks on international trade can be generalized beyond the ethnic Chinese, and the â€™cohesivenessâ€™ of the ethnic network matters to the trade enhancing effects of the network.
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Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 113.
Date of creation: Jul 2007
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 113. 2007.7
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-17 (All new papers)
- NEP-CNA-2007-11-17 (China)
- NEP-MIG-2007-11-17 (Economics of Human Migration)
- NEP-NET-2007-11-17 (Network Economics)
- NEP-SEA-2007-11-17 (South East Asia)
- NEP-SOC-2007-11-17 (Social Norms & Social Capital)
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