IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa13p484.html
   My bibliography  Save this paper

Cultural Distance and Gravity Effects among Migrants

Author

Listed:
  • Annie Tubadji

    ()

  • Peter Nijkamp

    ()

Abstract

This paper introduces cultural gravity as a new concept for analyzing socio-economic disparities among immigrants. It tests the existence of cultural gravity effects on the geographic concentration and human capital productivity of immigrants. Using cultural distance as a proxy for the local cultural gravity potential, the paper seeks to capture empirical evidence of the presence of significant gravity effects of culture. The paper seeks to highlight three new research issues: (i) local productivity patterns and the immigrants' contribution to them; (ii) the spatial concentration preferences of different immigrant groups; and (iii) the full culture-based development (CBD) mechanism of a joint cultural impact on the concentration and productivity of local human capital. To provide empirical evidence, we compose a cross-sectional database for the EU15, comprising inter alia the World Value Survey and Eurostat Census data, initially explored by a multivariate statistical analysis. Next, we present an extended formulation of a gravity model analyzed with appropriate regression methods, in particular explored in a logit context and through a recursive 3SLS model. Our results clearly demonstrate the existence of a cultural gravity effect among immigrants. Finally, an interesting find is that cultural gravity plays also a significant role in the context of the above-mentioned CBD growth model. The gravity model applied considers as two opposing sides the world at large and the particular locality, thus allowing the local GDP to play a role in the formation of the spatial preference among migrants. There are three specific empirical details worth notice. First, the migrants preference is expressed through a dummy variable, which is 1 when the average concentration of immigrants from a particular origin is above the average concentration of this type of immigrants around the world. Second, the recursive model is a combination of Weberian-Bourdeuian rationale for the formation of human capital in a locality, and at a second step the locally shaped human capital concoction is plugged in into a Romer-minded production function. Third, cultural distance is an innovative concept introduced to gravity modelling, quantified by the cultural capital characterizing negative cultural milieu towards the 'different' and those introducing a change. This cultural capital is measured as a vector variable, a product of factor analysis with a bunch of cultural attitudes of interest.

Suggested Citation

  • Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa13p484
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_00484.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. McCleary, Rachel & Barro, Robert, 2003. "Religion and Economic Growth across Countries," Scholarly Articles 3708464, Harvard University Department of Economics.
    2. Ron A. Boschma & Michael Fritsch, 2007. "Creative Class and Regional Growth - Empirical Evidence from Eight European Countries," Jena Economic Research Papers 2007-066, Friedrich-Schiller-University Jena.
    3. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    4. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring.
    5. Leamer, Edward E. & Levinsohn, James, 1995. "International trade theory: The evidence," Handbook of International Economics,in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 26, pages 1339-1394 Elsevier.
    6. Peter Nijkamp & Masood Gheasi & Piet Rietveld, 2011. "Migrants and International Economic Linkages: A Meta-Overview," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 359-376, July.
    7. Puffert, Douglas J., 2002. "Path Dependence in Spatial Networks: The Standardization of Railway Track Gauge," Explorations in Economic History, Elsevier, vol. 39(3), pages 282-314, July.
    8. Lucey, Brian M. & Zhang, QiYu, 2010. "Does cultural distance matter in international stock market comovement? Evidence from emerging economies around the world," Emerging Markets Review, Elsevier, vol. 11(1), pages 62-78, March.
    9. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    10. Pierre Garrouste & Stavros Iaonnides, 2001. "Evolution and Path-Dependency in Economic Ideas: Past and Present," Post-Print halshs-00274526, HAL.
    11. Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2005. "Cities and cultures," Journal of Urban Economics, Elsevier, vol. 58(2), pages 304-337, September.
    12. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    13. Michael Fritsch & Michael Stützer, 2012. "The Geography of Creative People in Germany revisited," Jena Economic Research Papers 2012-065, Friedrich-Schiller-University Jena.
    14. Baycan, T. & Nijkamp, P., 2011. "A socio-economic impact analysis of cultural diversity," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    15. Giuliano Guerra & Roberto Patuelli, 2014. "The influence of role models on immigrant self-employment: a spatial analysis for Switzerland," International Journal of Manpower, Emerald Group Publishing, vol. 35(1/2), pages 187-215, May.
    16. Gianmarco I.P. Ottaviano & Giovanni Peri, 2016. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters,in: The Economics of International Migration, chapter 7, pages 229-264 World Scientific Publishing Co. Pte. Ltd..
    17. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    18. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages 302-331, June.
    19. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 441-487.
    20. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    21. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    22. Page, Scott E., 2006. "Path Dependence," Quarterly Journal of Political Science, now publishers, vol. 1(1), pages 87-115, January.
    23. Tiago Cavalcanti & Stephen Parente & Rui Zhao, 2007. "Religion in macroeconomics: a quantitative analysis of Weber’s thesis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(1), pages 105-123, July.
    24. Mark Grinblatt, 2001. "How Distance, Language, and Culture Influence Stockholdings and Trades," Journal of Finance, American Finance Association, vol. 56(3), pages 1053-1073, June.
    25. Head, Keith & Ries, John, 2008. "FDI as an outcome of the market for corporate control: Theory and evidence," Journal of International Economics, Elsevier, vol. 74(1), pages 2-20, January.
    26. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 127-166, April.
    27. Laszlo Tihanyi & David A Griffith & Craig J Russell, 2005. "The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 270-283, May.
    28. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
    29. Jan Wedemeier, 2011. "Creative professionals and high-skilled agents': Polarization of employment growth?," ERSA conference papers ersa11p489, European Regional Science Association.
    30. Kalok Chan & Vicentiu Covrig & Lilian Ng, 2005. "What Determines the Domestic Bias and Foreign Bias? Evidence from Mutual Fund Equity Allocations Worldwide," Journal of Finance, American Finance Association, vol. 60(3), pages 1495-1534, June.
    31. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2010. "The effect of migration on income growth and convergence: Meta-analytic evidence," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 537-561, August.
    32. Nathan, Max, 2007. "The Wrong Stuff? Creative Class Theory and Economic Performance in UK Cities," MPRA Paper 29486, University Library of Munich, Germany.
    33. Timothy R. Wojan & Dayton M. Lambert & David A. McGranahan, 2007. "Emoting with their feet: Bohemian attraction to creative milieu -super-†," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 711-736, November.
    34. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    35. Richard Florida & Charlotta Mellander, 2010. "There goes the metro: how and why bohemians, artists and gays affect regional housing values," Journal of Economic Geography, Oxford University Press, vol. 10(2), pages 167-188, March.
    36. Guo, Rongxing, 2004. "How culture influences foreign trade: evidence from the U.S. and China," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(6), pages 785-812, December.
    37. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1335-1374.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    immigration; gravity; cultural distance; human capital; cultural capital; productivity;

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa13p484. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.