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Proximity, trade and ethnic networks of migrants: case study for France and Egypt

Author

Listed:
  • Andrés Artal-Tur
  • Ahmed Farouk Ghoneim
  • Nicolas Peridy

Abstract

Purpose - – The purpose of this paper is to study how proximity affects the trade-migration link. By focusing on two case studies, France and Egypt, the authors explore if migrants promote and help to deal with market heterogeneity in international markets. Using an ethnic network approach the authors also test for interactions between the characteristics of migrants and proximity issues. Design/methodology/approach - – The paper builds on two case studies to illustrate the main working hypotheses. The main framework is that of ethnic networks, proximity ties, and market heterogeneity. Static and dynamic panel data methods are employed when estimating extended gravity trade equations. The authors account for country-pair fixed effects and instrument by lagged stocks of migrants, in order to deal with bilateral commonalities and endogeneity issues in the estimation procedure. Findings - – The paper provides evidence on how proximity enhances trade. Additional trade effects are found for countries sharing closer ties. Networks of migrants appear to help firms to deal with fixed trade costs, also generating some market heterogeneity that at the end influences the trade-migration linkage. Characteristics of migrants also seem to matter, interacting with proximity issues, and resulting in specific trade effects. Practical implications - – Proximity issues seem to matter in the trade creation effects of networks of migrants. In this way integration processes between countries would be showing some positive externalities in the side of trade flows. Characteristics of emigrants should be taken into account when defining migratory policies, mainly for the education and assimilation issues. Originality/value - – The paper get deeper insights in some emerging issues in the trade-migration literature by focusing in two relevant case studies.

Suggested Citation

  • Andrés Artal-Tur & Ahmed Farouk Ghoneim & Nicolas Peridy, 2015. "Proximity, trade and ethnic networks of migrants: case study for France and Egypt," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(4), pages 619-648, July.
  • Handle: RePEc:eme:ijmpps:v:36:y:2015:i:4:p:619-648
    DOI: 10.1108/IJM-02-2014-0062
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    Citations

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    Cited by:

    1. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2018. "Anti-Migration as a Threat to Internationalization? A Review of the Migration-Internationalization Literature," GLO Discussion Paper Series 287, Global Labor Organization (GLO).
    2. Albert Millogo & Ines Trojette, 2020. "Pro-trade effects of MENA immigrants in France: does governance matter?," Economics Bulletin, AccessEcon, vol. 40(4), pages 3219-3230.
    3. Bulawayo, Maio & Mudenda, Dale & Ndulo, Manenga & Simwanza, Charles, 2020. "Does Immigration Stimulate Non-Traditional Exports? Evidence from Zambia," African Journal of Economic Review, African Journal of Economic Review, vol. 8(3), November.
    4. Metri F. Mdanat & Taleb A. Warrad & Loay M. Salhieh & Talah S. Arabiyat, 2018. "A Gravity Approach to Determinants of Export in a Small Open Economy: ?Evidence from Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 40-46.
    5. Bastos, Paulo & Silva, Joana, 2012. "Networks, firms, and trade," Journal of International Economics, Elsevier, vol. 87(2), pages 352-364.
    6. Simon Winter, 2020. "“It’s the Economy, Stupid!”: On the Relative Impact of Political and Economic Determinants on Migration," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(2), pages 207-252, April.
    7. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2018. "Do Migrants Facilitate Internationalization? A Review of the Literature," Working Papers 2018:11, Örebro University, School of Business, revised 19 Dec 2019.
    8. Yue Pu & Yunting Li & Yingzi Wang, 2021. "Structure Characteristics and Influencing Factors of Cross-Border Electricity Trade: A Complex Network Perspective," Sustainability, MDPI, vol. 13(11), pages 1-25, May.

    More about this item

    Keywords

    Ethnic networks; Market heterogeneity; Proximity; Trade costs; O15; O24; F14;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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