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The Relation Between Global Migration and Trade Networks

Author

Listed:
  • Paolo Sgrignoli

    (IMT School for Advanced Studies Lucca)

  • Rodolfo Metulini

    (IMT School for Advanced Studies Lucca)

  • Stefano Schiavo

    (Department of Economics and Management, University of Trento)

  • Massimo Riccaboni

    (IMT School for Advanced Studies Lucca)

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.

Suggested Citation

  • Paolo Sgrignoli & Rodolfo Metulini & Stefano Schiavo & Massimo Riccaboni, 2013. "The Relation Between Global Migration and Trade Networks," Working Papers 6/2013, IMT School for Advanced Studies Lucca, revised Oct 2013.
    • Handle: RePEc:ial:wpaper:6/2013
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    4. Sgrignoli, Paolo & Metulini, Rodolfo & Schiavo, Stefano & Riccaboni, Massimo, 2015. "The relation between global migration and trade networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 417(C), pages 245-260.
    5. Rodolfo Metulini & Massimo Riccaboni & Paolo Sgrignoli & Zhen Zhu, 2017. "The Indirect Effects of FDI on Trade: A Network Perspective," Working Papers 04/2017, IMT School for Advanced Studies Lucca, revised Mar 2017.
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    More about this item

    Keywords

    Trade; Migration; networks; gravity model; spatial econometric;
    All these keywords.

    JEL classification:

    • 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

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