Cross The Border and Close The Gap? : How Do Migrants Enhance Trade
Recent theoretical works suggest that migrants carry their social networks when moving across borders and that they bridge the information gap between partner countries. We derive a theoretical model where migrants reduce informational trade barriers and thus enhance exports. The model is estimated using international trade data at a German State-level. We provide evidence that migrants have a positive and statistically significant impact on bilateral exports of German States.
|Date of creation:||2005|
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Web page: http://www.uni-tuebingen.de/en/faculties/wirtschafts-und-sozialwissenschaftliche-fakultaet/faecher/wirtschaftswissenschaft.html
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