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Networks in the Diaspora

Author

Listed:
  • Gil S. Epstein

    (Bar-Ilan University, IZA, CReAM and Centro Studi Luca d'Agliano)

  • Odelia Heizler (Cohen)

    (Tel-Aviv_Yaffo Academic College)

Abstract

In this paper, we examine possible types of network formation among immigrants in the diaspora and between those immigrants and the locals in different countries. We present the model by considering different possible interactions between immigrants and the new society in their host country. Spread of migrants from the same origin in the diaspora may well increase international trade between the different countries, depending on the types of networks formed. We present possible applications of network structure on the country of origin, such as on international trade. We find that when the size of the diaspora is sufficiently large, the natives in the different countries will be willing to bear the linking cost with the immigrants because the possible benefits increase with increasing size of the diaspora.

Suggested Citation

  • Gil S. Epstein & Odelia Heizler (Cohen), 2016. "Networks in the Diaspora," Development Working Papers 389, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:389
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    File URL: https://www.dagliano.unimi.it/media/WP2016_389.pdf
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    More about this item

    Keywords

    Immigrants; Networks; Diaspora;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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