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Do immigrants counter the effect of cultural distance on trade? Evidence from US state-level exports

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  • Tadesse, Bedassa
  • White, Roger

Abstract

We examine the effects of immigrants and cultural distance on US state-level exports, placing emphasis on the extent to which immigrants may offset the influence of cultural distance with respect to the initiation and intensification of exports. Our findings suggest that greater cultural differences between the US and immigrants' home countries reduce both the likelihood that exporting occurs and, when exporting is taking place, the level of exports. Immigrants are found to exert pro-export effects that offset, at least partially, the trade-inhibiting effects of cultural distance. The estimated effects of both cultural distance and immigrants are found to be greater when the level of exports is examined as compared to when the likelihood that exporting occurs is considered; however, significant variation in the export-initiation and intensification effects of immigrants and cultural distance is reported across states.

Suggested Citation

  • Tadesse, Bedassa & White, Roger, 2008. "Do immigrants counter the effect of cultural distance on trade? Evidence from US state-level exports," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2304-2318, December.
  • Handle: RePEc:eee:soceco:v:37:y:2008:i:6:p:2304-2318
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters,in: Migration Impact Assessment, chapter 9, pages 301-337 Edward Elgar Publishing.
    2. Flisi, Sara & Murat, Marina, 2011. "The hub continent. Immigrant networks, emigrant diasporas and FDI," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 796-805.
    3. Masood Gheasi & Peter Nijkamp & Piet Rietveld, 2013. "Migration and foreign direct investment: education matters," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 73-87, August.
    4. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Center for Economic Research (RECent) 107, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    5. Annie Tubadji & Brian Osoba & Peter Nijkamp, 2015. "Culture-based development in the USA: culture as a factor for economic welfare and social well-being at a county level," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(3), pages 277-303, August.
    6. David Law & Murat Genç & John Bryant, 2013. "Trade, Diaspora and Migration to New Zealand," The World Economy, Wiley Blackwell, vol. 36(5), pages 582-606, May.
    7. Marina Murat, 2013. "Education ties and investments abroad. Empirical evidence from the US and UK," Center for Economic Research (RECent) 091, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    8. Marina Murat & María Luisa Recalde & Pedro Gabriel Degiovanni, 2015. "The education networks of Latin America. Effects on trade during and after the cold war," Center for Economic Research (RECent) 113, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    9. SANDEEP, Kaur, 2015. "Migration And Bilateral Trade Flows: Evidence From India And Oecd Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 179-196.
    10. Marina Murat & María Luisa Recalde & Pedro Gabriel Degiovanni, 2015. "The education networks of Latin America. Effects on trade during and after the cold war," Department of Economics 0056, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    11. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Department of Economics 0043, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    12. Peter H. Egger & Maximilian von Ehrlich & Douglas R. Nelson, 2012. "Migration and Trade," The World Economy, Wiley Blackwell, vol. 35(2), pages 216-241, February.
    13. Faqin Lin, 2011. "The pro-trade impacts of immigrants: a meta-analysis of network effects," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 4(1), pages 17-27, February.
    14. Horácio Faustino & Isabel Proença, 2011. "Effects of Immigration on Intra-Industry Trade: A logit analysis," Working Papers Department of Economics 2011/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    15. repec:eee:riibaf:v:42:y:2017:i:c:p:966-985 is not listed on IDEAS
    16. Egger, Peter & Nelson, Doug R & von Ehrlich, Maximilian, 2012. "The Trade Effects of Skilled versus Unskilled Migration," CEPR Discussion Papers 9053, C.E.P.R. Discussion Papers.
    17. Roger White, 2010. "Migration and International Trade," Books, Edward Elgar Publishing, number 13670, April.
    18. White, Roger & Tadesse, Bedassa, 2008. "Immigrants, cultural distance and U.S. state-level exports of cultural products," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 331-348, December.
    19. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318, April.
    20. Sonia Plaza, 2013. "Diaspora resources and policies," Chapters,in: International Handbook on the Economics of Migration, chapter 27, pages 505-529 Edward Elgar Publishing.

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